The Central Bank of Nigeria’s (CBN) has disclosed currency outside the banking system dropped to N3.66 trillion in July, inferring that its ongoing efforts to tighten liquidity and encourage formal banking deposits are showing promising results.
The development marks the second significant decline this year, reflecting a shift in public behavior towards increased reliance on banking institutions.
The figure represents a 3.32 per cent drop (N130 billion) from June’s N3.79 trillion; a sharper decrease compared to the modest 0.62 per cent (N20 billion) reduction recorded between March and April.
The trend suggests that Nigerians are increasingly opting to deposit their money in banks rather than keeping it in cash.
Interestingly, while currency outside banks decreased, the total currency in circulation experienced a slight uptick, rising to N4.05 trillion; a modest increase of just 0.12 per cent.
This indicates a stabilization in cash usage across the economy, which financial experts attribute to the growing adoption of digital transactions and regulatory measures effectively managing cash flow.
