Bunady
Currency outside the banking system in Nigeria surged to N4.65 trillion in November 2024, representing 95.3 per cent of the total currency in circulation, according to the latest data from the Central Bank of Nigeria (CBN)....TAP TO READ THE FULL CONTENT | TAP TO READ THE FULL CONTENT
This marks a significant increase of N360 billion from N4.29 trillion in October when the proportion stood at 94.2 per cent.
The total currency in circulation which encompasses cash held both by the public and within banks also climbed to N4.88 trillion in November, up from N4.55 trillion in October.
According to analysts, while the 7.3 per cent rise in circulation is notable, the faster growth of cash held outside banks underscores an increasing preference for liquidity outside the formal banking system especially with Yuletide spending.
Since the start of the year, the share of currency outside banks has been on a steady rise. In January 2024, N3.28 trillion was held outside banks, accounting for 89.9 per cent of the total N3.65 trillion in circulation. By November, this figure had jumped by 41.8 per cent, illustrating a consistent upward trend in cash-based transactions and liquidity preference.
A monthly analysis revealed the dynamics of currency outside banks throughout 2024. In January, currency outside banks amounted to N3.28 trillion, representing 89.9 per cent of the N3.65 trillion total currency in circulation. By February, this figure increased to N3.41 trillion, a 4.0 per cent rise from January, while the total currency in circulation grew slightly to N3.69 trillion, with 92.5 per cent held outside banks.
