Cbn: Currency In Circulation Reaches N4.05 Trillion In June

Credit to the economy declines to N101.18 trillion

In June 2024, the total amount of Currency-In-Circulation (CIC) in Nigeria experienced a 2.11% increase, rising by N83.63 billion to N4.05 trillion from the previous month’s value of N3.97 trillion, according to the Central Bank of Nigeria (CBN).

The latest Money and Credit Statistics released by the CBN on its website revealed that Currency Outside Banks (COB) also saw an upward movement in June. It rose by N80.48 billion or 2.17% to reach N3.79 trillion, compared to N3.71 trillion in May.

Despite the Central Bank of Nigeria (CBN) maintaining a tight monetary policy to tackle inflation and exchange rate instability, Currency-In-Circulation (CIC) and Currency Outside Banks have consistently shown an upward trend in recent months.

Analysts at CSL Research expressed concern about the recent surge in Currency in Circulation, stating that the significant amount of currency circulating outside the banking system has been a persistent issue in Nigeria’s history. The analysts emphasized the urgency of reducing cash outside the banking system to improve the effectiveness of monetary policy, promote financial inclusion, and combat illicit activities such as terrorism and money laundering.

Efforts to address these challenges can contribute to broader economic stability and security objectives in the financial system.

Further analysis of the CBN’s latest Money and Credit Statistics reveals that credit to the economy (government and private sector) provided by financial institutions declined by N1.51 trillion or 1.47% to reach N101.18 trillion in June 2024, compared to N102.69 trillion in the previous month.

Specifically, the data indicates that net credit to the government decreased by 1.13% to N28.05 trillion in June, compared to N28.38 trillion in May. Additionally, credit to the private sector declined by 1.60% to N73.12 trillion in June, compared to N74.31 trillion in the previous month.