Post Views: 141 New data from the Central Bank of Nigeria (CBN), on Friday, November 8, 2019, showed that currency-in-circulation at the end of Octobe...
New data from the Central Bank of Nigeria (CBN), on Friday, November 8, 2019, showed that currency-in-circulation at the end of October 31, jumped by N50.346bn or 2.51%, from N2.005tr at the end of the preceding month to N2.055tr.
Expectations were that following the commencement of penal charges for cash deposits and withdrawals outside of those prescribed under the cashless policy initiatives of the Bankers’ Committee, comprising top executives of the apex bank, chief executives of banks and other related institutions in the country (READ MORE).
The currency in circulation at the end of October is the highest since the end of June, when it stood at N2.014tr, ahead of the festive period of Christmas and New Year, usually associated with celebrations of various kinds across the country.
On a year-to-date basis, the value of currency outside of the banking system dropped by N273.76bn, or 11.5% from the N2.329tr peak at the end of December 31, 2018.
Year-on-year, information on the CBN website showed that the figure rose by N99.937bn or 5.11% from N1.956tr on October 31, 2018.
Recall that the CBN recently approved bank charges on deposits and withdrawals above the set threshold in six states with commercial cities across the country from Wednesday, September 18, 2019.
A circular by Sam Okojere, CBN’s Director, Payments System Management Department, titled “Re: Implementation of the cashless policy,” listed the states as Lagos, Ogun, Kano, Abia, Anambra, and Rivers States, as well as the Federal Capital Territory (FCT), Abuja.
The move which is part of efforts to migrate more people onto electronic payment platforms is expected to drastically reduce the cost of currency management in the country, with withdrawals of over N500,000 for individual accounts attracting 3% processing fees; and 2% for lodgments of similar amounts with effect from.
According to a circular to all deposit money bank (DMBs), which also announced the commencement of the charges on deposits in addition to already existing charges on withdrawals, corporate accounts will, however, attract 5% processing fees for withdrawals and 3% for lodgments of amounts above N3,000,000 from that date.
Nationwide implementation of the cashless policy, the circular noted, will take effect from March 31, 2020.