Recent data from the Central Bank of Nigeria, CBN’s, Money and Credit Statistics show that currency outside banks reached N4.02 trillion in September 2024, marking a 66.2% increase compared to N2.42 trillion in September 2023.
Month-on-month, the trend continued with a 3.8% increase from N3.87 trillion in August 2024, adding N147.9 billion to the unbanked currency pool by September.
The central bank’s data indicates this behaviour could limit liquidity within the formal banking sector, thus impacting credit availability and interest rates.
As Nigerians increasingly opt to hold cash, these shifts may influence future CBN policy as it seeks to balance monetary controls with the reality of cash preferences.
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