Currency-in-circulation across the nation fell by N87.689bn or 4.69% to N1.781tr at the end of September, compared to the previous month’s level (Month-on-Month), according to the latest data by Central Bank of Nigeria (CBN) on Friday.
In August, the Currency-in-Circulation, which is the total value of currency (coins and paper, less the amount that has been removed through the regular sale of treasury bills to mop up cash from the system, depending on its measurement of liquidity) outside of the banking system rose by N99.65bn or 5.63% to N1.868tr, compared to the level in July.
For the third quarter (July to September), the September level represented an increase of N11.961bn or 0.67% from N1.769tr in July, while Year-to-Date, currency-in-circulation reduced by a significant N398.128bn or 18.26% from the peak of N2.179tr in the festive month of December 2016.
Meanwhile, Year-on-Year, currency outside of Nigeria’s banking system rose by N13.241bn or 0.73% from N1.794tr in September 2016.
It is however not known whether the drop is associated with the school fees paying season, when a lot of parents traditional pool resources together to settle the tuition cost of their children and wards this year, especially given that the figure rose between August and September last year from N1.679tr or N115bn or 6.84%.
In the corresponding period of 2015 however, according to a further analysis of the CBN data, currency-in-circulation rose by N92.936bn or 6.01% from N1.544tr to N1.637tr.