The value of currency in circulation rose to N3.97tn at the end of May, marking an all-time high and a 1.07 per cent increase over the previous month.
Data released on the Central Bank of Nigeria’s website on Sunday indicated a consistent rise in currency circulation, from N3.92tn in April to N3.86tn in March.
This increase has persisted despite the CBN’s monetary policy tightening, which has set the benchmark interest rate at 26.65 per cent.
Currency in circulation includes banknotes and coins produced and issued for use in the economy.
In March, the currency in circulation at N3.87tn represented about a 4.76 per cent month-on-month increase from N3.69tn in February 2024.
Meanwhile, currency outside banks also increased progressively during the first quarter, growing from N3.28tn in January to N3.41tn and N3.63tn in February and March, respectively.
The data revealed that over 90 per cent of currency in circulation is held outside the banking system, indicating that Nigerians are holding more cash.
At the March meeting of the Monetary Policy Committee, member Muhammad Abdullahi noted that the apex bank had identified high currency outside banks as one of the monetary drivers of the country’s inflation.
