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Naira in circulation hits N1.83trn  

naira

The Central Bank of Nigeria (CBN) has said N1.83 trillion currency was in circulation for October.

The amount of Naira in circulation according to CBN in October increased by 1.75 per cent, above N1.79 trillion recorded in September 2016.

According to data collected by our correspondent, the currency in circulation early this year was N1.73 trillion but dropped by 0.78 per cent to N1.7 trillion in February.

Currency in circulation according to CBN data stood at N1.86 trillion in March, the highest so far this year. In April, the figure fell by 2.6 per cent to N1.76 trillion and closed May and June at N1.75 trillion and N1.68 trillion respectively.

Further investigation by revealed that currency in circulation remained flat at N1.66 trillion and N1.68 trillion in July and August respectively.

However, CBN supported the naira in October with increased weekly disbursement to BDCs to $15,000 from $10,000, following the directive that all purchases be routed via Travelex and First Bank of Nigeria Limited; $313 million forwards sold to manufacturers and airline operators in a special auction to clear backlog; and a Special Secondary Market Intervention (SSMIS) wherein 60 and 90 day forwards were sold to companies in both the agricultural and manufacturing sectors.

 Recall that the Monetary Policy Committee of CBN had left interest rate unchanged at the last meeting in September while the CBN amended the provisions of Memorandum 21 of foreign exchange manual—all in a bid to encourage currency inflows by resident Nigerian nationals and/or companies and foreign portfolio investors.

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