The Central Bank of Nigeria (CBN) has stated that the volume of currency in circulation grew by 4.58 percent from N2.84tn in September to N2.97tn in October.
The increase in currency volume totals N129bn, this is according to figures released by the Central Bank of Nigeria.
In August, the volume of currency in circulation had declined to N2.78tn from N2.81tn in July. In June, it was N2.74tn and in May, N2.79tn. It stood at N2.79tn in April and N2.8tn in March.
It stood at N2.78tn and N2.83tn in February and January respectively.
The CBN stated that the currency in circulation had risen by N465.47bn or 19.06 percent, from N2.44tn in 2019 to N2.91tn in 2020.
“In 2020, there were higher withdrawals by DMBs than deposits, due to the panic need to hold cash to deal with the emergencies and reduced banking hours due to restrictions to curb spread of the pandemic,” the bank said.
The apex bank stated further that it came up with and unveiled a clean note policy and banknote fitness guidelines in 2018 to protect public trust and retain the quality of circulated notes in the economy.
The guidelines offer a blueprint of quarterly and yearly undertakings to make certain that this objective was accomplished.
According to the apex bank, the policy provides that every newly printed and existing banknotes should measure up to predefined standards before circulation and re-circulation in the economy.
The CBN said it used the “accounting/statistical/withdrawals and deposits approach” to compute the currency in circulation in the country.
