Currency in circulation hits N3.97tn in May

By the end of May, the value of the currency in circulation had reached an all-time high of N3.97 trillion, up 1.07 percent from the previous month.

The money in circulation increased steadily from N3.92 trillion in April to N3.86 trillion in March, according to figures published on the Central Bank of Nigeria website on Sunday.

The benchmark interest rate has been set at 26.65%, yet despite the CBN tightening its monetary policy, the amount of cash in circulation has been rising month over month.

The coins and banknotes that have been created and distributed for usage in the economy are represented by the currency in circulation.

The CBN reports that the amount of money in circulation in March was N3.87 trillion, up 4.76 percent from N3.69 trillion the previous month.

In the first quarter, currency outside of banks also grew gradually, rising from N3.28 trillion in January to N3.41 trillion in February and N3.63 trillion in March.

According to the data, more over 90% of money in circulation is kept outside of banks, suggesting that Nigerians are carrying more cash.

At the CBN's March meeting, Muhammad Abdullahi, a member of the Monetary Policy Committee, made statements suggesting that the central bank had determined that high currency outside banks was one of the monetary causes of the nation's inflation.In circulation money reaches N3.97 trillion in May.