Currency Outside Banks Soars to N2.26 Trillion in First Half of 2023

The amount of currency outside banks in Nigeria soared to N2.26 trillion in the first half of 2023, according to the Central Bank of Nigeria (CBN). This represents a significant increase from the N982.09 billion figure at the end of February 2023.

The CBN attributed the increase to the Naira redesign policy implementation, which led to a sharp decline in the amount of currency in circulation.

In December 2022, the currency in circulation stood at 3.2 trillion, but this fell to N982.09 billion by the end of February 2023.

The recent figure shows that N2.3 trillion had been mopped up from circulation in the first half of 2023. This is a positive development for the CBN, as it helps to reduce the amount of excess liquidity in the economy.

However, it is important to note that the increase in currency outside banks could also have negative consequences. For example, it could lead to an increase in inflation, as people have more cash in their possession.

Overall, the increase in currency outside banks is a significant development that will have a number of implications for the Nigerian economy. It is important to monitor this trend closely to assess its impact.

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