Currency in circulation rises to N3.965tn
Currency in Circulation figures from CBN
Currency in circulation rises to N3.965tn
Nike Popoola
The currency in circulation (CIC) in the country hit N3.965tn as of the end of May, 2024 according to the Central Bank of Nigeria.
Figures obtained from the CBN showed that the CIC which stood at N3.650tn and N3.693tn in January and February, moved to N3.869tn and N3.922tn in March and April.
According to the CBN, CIC can be defined as currency outside the vaults of Central Bank, that is, all legal tender currency in the hands of the general public and in the vaults of the Deposit Money Banks.
The Central Bank of Nigeria employs what is referred to as the “accounting/statistical/withdrawals & deposits approach” to compute the CIC in Nigeria.
This approach involves tracking the movements in CIC on a transaction by transaction basis. That is, for every withdrawal made by a Deposit Money Bank (DMB) at one of CBN’s Branches, an increase in CIC is
recorded, and for every deposit made by a DMB at one of CBN’s branches, a decrease in CIC is recorded.
The transactions listed above are all recorded in the Central Bank’s Currency In Circulation account, and the balance on the account at any point in time represents the country’s Currency in Circulation.
The accuracy of the CIC figure reported on the CBN’s website is a function of the postings made into the CIC account of the Bank at the 37 branches across the country.
The CBN however operates a robust reconciliation/call-over system which serves to highlight erroneous or non-impacted postings made into the CIC account in order to have them resolved within the shortest possible time. This ensures that the CIC figure reported by the CBN at any point is free from material error.
