Currency Outside Banks Rose To N3.08trn In Nov 2023 – CBN
Latest figures from the Central Bank of Nigeria (CBN), on Tuesday, revealed that cash outside banks experienced a 27.80 per cent increase, reaching N3.08 trillion in November 2023 from N2.41 trillion in recorded in September 2023.
This was even as currency in circulation (CIC) grew by 92 per cent, from N2.76 trillion in September 2023, to N3.35 trillion.
This surge marks a notable rise from the 86 per cent recorded in October 2022, just before the CBN’s naira redesign policy took effect.
The magnitude of this shift is further illustrated by the CIC, which soared by 21.37 per cent in under three months, amid the intensifying cash crunch felt across the nation.
Specifically, the CBN’s data reveals a climb to N3.35 trillion in CIC in November 2023, a significant jump from N2.76 trillion noted in September 2023, coinciding with Yemi Cardoso’s assumption of office as the Governor of the CBN.
Also, cash outside banks experienced a 27.80 per cent increase, reaching N3.08 trillion in November 2023 from N2.41 trillion in September 2023.
This surge in non-bank held cash comes amidst growing public concern over the sufficiency of currency in the banking system.
In response, the CBN issued a statement in November 2023, reassuring citizens of adequate currency stock and advising against panic withdrawals.
The backdrop to this scenario includes widespread reports of cash scarcity at banks, ATMs, Points of Sale, and Bureaux de Change (BDCs) across major cities in Nigeria.
This shortage has placed considerable strain on Nigerian banks, which have struggled to meet customer withdrawal demands, leading to various operational challenges.
The CBN also removed the deadline for the legal tender status of old N200, N500, and N1000 notes from the initial December 31, 2023, till otherwise advised, which, likely signals a complete end to the cash scarcity crisis faced early this year.
This trend reveals a deeper behavioural pattern among Nigerians. According to analysts, the spike in CIC strongly suggests that more people are opting to hoard cash.
“This behaviour is a likely contributor to the palpable cash scarcity currently gripping the country.
As more cash is held outside the banking system, the availability of currency within banks and ATMs dwindles, leading to the challenges many Nigerians are facing in accessing cash”, they said.
