Money held outside of banks (CoB) increased monthly (MoM) by 66 percent from N843 billion in February 2023 to N1.4 trillion in March.
The currency-in-circulation (CIC) figure for March, which was revealed in the Central Bank of Nigeria (CBN) Money and Credit data for the month, was N1.68 trillion, up 71 percent from N982 billion in February 2023.
As a result, CoB decreased MoM by 70%, from N2.6 trillion in December 2022 to N788.9 billion in January 2023.
Recall the Federal Government’s decision to redesign the naira was made in part to control inflation and collect extra money that was lying around outside of the banking system.
This incorporates the effects of the Supreme Court’s decision to allow old N200, N500, and N1,000 notes to continue in use till December 31, 2023.
Recall that the CBN drained around N1.81 trillion from the Currency Outside Banks (CoB) and withdrew old banknotes, causing the Currency-in-Circulation to drop to N1.4 trillion in January 2023.
According to the CBN Money and Credit data for January, Nigerians deposited N1.81 trillion into the banking system in January in response to the original deadline of January 31st, 2023.
Currency-in-circulation (CIC), which decreased MoM by 54% to N1.38 trillion in January 2023 from N3 trillion in December 2022 amid the country’s naira shortage, is another indicator of the impact of the initial deadline.
Comments 1