The Central Bank of Nigeria (CBN) has said currency in circulation dropped to N2.11 trillion in May from N2.16 trillion reported in April 2019.
The CBN had reported N2.15 trillion currency in circulation on the back drop of continued mopped-up of excess liquidity in the system, as a move to curb inflation.
The apex bank had said currency in circulation gained 4.75per cent to N2.24 trillion in February 2019 from N2.14 trillion reported in January.
Our correspondent gathered that, N2.24 trillion currency in circulation is the highest recorded by the CBN in over two years.
Commenting on increasing currency in circulation, currency analysts at Ecobank Nigeria, Mr. Kunle Ezun, hinted that excess liquidity in the economy has leveraged growth in currency in circulation, stressing that Nigerians are finding it difficult to embrace the cash policy of the CBN.
He explained further that Nigeria is still more of a cash economy, facing infrastructure challenges.
“Someone can blame infrastructure deficit to CBN’s good intention of making Nigeria a cashless society. The infrastructure that will make the cashless policy work is missing compared to what we have in Kenya.
The apex bank in 2002 introduced the cashless policy to eliminate the amount of physical cash (coins and notes) circulating in the economy, and encouraging more electronic-based transactions (payments for goods, services, transfers, among others.)
Meanwhile, the Naira exchange rate at the official window closed at N306.95/$1, representing a 0.02per cent depreciation as against last Friday’s position.
The Investors and Exporters (I&E) FX window opened at N359.94, traded high at N361.50 and eventually closed at N360.63 representing a 0.03per cent appreciation against last Friday’s closing position.
According to the FMDQ OTC securities Exchange, a total of $213.97 million was transacted through the I&E window on Monday.
At the money market, the overnight(O/N) rate closed at 12.71per cent, representing a 1.29per cent appreciation against last Friday’s closing position, while Open Buy-Back (OBB) rate closed at 12.29per cent, representing a 1.43per cent appreciation against last Friday’s closing position.