Currency in Circulation Falls to N1.824 Trillion in July

• Currency in Circulation Falls to N1.824 Trillion in July

The currency in circulation fell by N75.84 billion to N1.824 trillion in the month of July, down from the N1.9 trillion filed in June 2018.

According to the Central Bank of Nigeria, the figure rose from N1.93 trillion in February to N2.03 trillion in March.

The CBN report also showed that the total currency in circulation stood at N1.95 trillion and N1.93 trillion in April and May, respectively.

The drop in the figure has been attributed to the surge in electronic payment like rising use of Automated Teller Machines, Point of Sale and mobile transfers.

Speaking on factors affecting currency in circulation, the Chief Executive Officer, Economic Associates, Dr Ayo Teriba said: “The e-money is displacing the naira on the retail fund as a means of payment, as a store of value, foreign currency is replacing the naira. So that trend may continue until you have a negligible amount of naira in circulation.”

Nigerians no longer need cash to pay for things at the supermarket or restaurant as they can now pay with their bank card.

Teriba said, “Instead of giving people cash, you can transfer, so many of the things that you needed to use cash for in the past you don’t need currency for them now. Electronic money is displacing cash at the retail end.”