Naira in circulation rises by 87% to ₦2.6 trillion in 6 months
CIC is an important measure of a country’s money supply.
The Currency In Circulation (CIC) recorded in June 2023 was the highest recorded so far for the year as it climbed to ₦2.6 trillion.
The amount indicates an increase of 87.05% in six months from ₦1.39 trillion recorded in January 2023.
According to the data from the Central Bank of Nigeria (CBN), there was a fluctuation in the CIC recorded in the first quarter of 2023 (Q1).
As of January 2023, the CIC stood at ₦1.39 trillion and by February, it had dropped to ₦982,097 billion.
The figure recorded in February 2023 was listed as the lowest CIC ever witnessed in the last 15 years.
A review of the CBN’s Money and Credit Statistics revealed that from December 2022, the CIC in the country decreased from ₦3.1 trillion to ₦982 billion in February 2023 indicating a 68.3% decrease over the period.
This was a result of the CBN’s naira redesign policy initiated in October 2022, to phase out the old ₦1,000, ₦500 and ₦200 denominations.
The policy which aimed to mop up excess cash flopped as businesses and households were unable to access their cash at banks to make daily transactions.
By March 2023, the CIC increased to ₦1.68 trillion when the apex bank relaxed its rules on the naira redesign policy.
By April, May, and June, there was a steady increase in the CIC as the values recorded were ₦2.48 trillion, ₦2.53 trillion, and ₦2.60 trillion, respectively.
CIC is an important measure of a country’s money supply. It refers to the amount of cash – whether paper notes or coins – used physically by consumers and businesses to conduct transactions.
According to the CBN, it can be described as all currencies regarded as legal tender currently held by the public and in the vaults of the Deposit Money Banks.
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