Latest data by the Central Bank of Nigeria (CBN) shows currency-in-circulation and outside of the nation’s banking system jumped by N104.962bn or 5.85% Month-on-Month to N1.896tr at the end of November, from N1.791tr. This was the highest level since May when it stood at N1.897tr, from where it dropped June and July, before spiking in August, after which it commenced another gradual decline before the latest spike that may have given a hint of what the year-end that is associated with Christmas and New Year festivities.
www.investopedia.com defines currency in circulation as “currency that is physically used to conduct transactions between consumers and businesses rather than stored in a bank, financial institution or central bank.”
Wikipedia, https://en.wikipedia.org, on the other hand, defines it as term in monetary economics as “…the total value of currency (coins and paper currency) that has ever been issued minus the amount that has been removed from the economy by the central bank.”
Year-to-Date basis, the figure dropped by N283.018bn or 12.98% from N2.179tr at the end of December 2016; while Year-to-Year, currency circulating within Nigeria fell by N11.707bn or 0.61% from N1.907tr in the corresponding period of 2016.
The biggest drop so far was between December 2016 and January 2017, when the figure declined by N184.597bn or 8.47% to N1.978tr; while the lowest it has fallen so far this year was the N1.769tr reported for the July month-end.