Despite the Central Bank of Nigeria’s (CBN) monetary policy tightening measures which has seen the benchmark interest rate stand at 26.65 per cent, currency in circulation has risen to N3.97 trillion at the end of May 2024, representing a 1.07 per cent increase over the previous month.
The data released on the Central Bank of Nigeria website on Sunday indicated that the currency in circulation has been rising consistently over the months from N3.87 trillion in March to N3.92 trillion in April.
Currency in circulation represents banknotes and coins that have been produced and issued for use in the economy.
According to CBN, currency in circulation at N3.87 trillion in March represented about a 4.76 per cent month-on-month increase from N3.69 trillion in February 2024.
CBN also reported that currency outside banks also increased progressively during the first quarter, growing from N3.28 trillion in January to N3.41 trillion and N3.63 trillion in February and March, respectively.
The data revealed that over 90 per cent of currency in circulation is held outside of the banking system, indicating Nigerians are holding more cash.