According to the latest data from the Central Bank of Nigeria (CBN), Nigeria’s currency in circulation fell to ₦5 trillion in March 2025
Currency in circulation refers to the total amount of physical paper currency and coins issued by the central bank that are actively used for transactions and held by the public and businesses outside of the banking system.
The reports published by CBN show a 0.7% decline in currency in circulation (CIC), with the figure dropping to ₦5.04 trillion in February 2025 from ₦5.24 trillion in January 2025, making a cumulative decline of ₦240 billion, or 4.58%, in the first quarter of 2025.
Meanwhile, banks’ reserves held with the CBN rose to N28.5 trillion in March 2025, up from ₦27.6 trillion in February and ₦27.43 trillion in January
The increase in bank reserves could be attributed to higher deposit inflows, restricted liquidity, or a deliberate policy by the CBN to rein in inflationary pressures.
It may also reflect increased compliance by deposit money banks with the Cash Reserve Ratio (CRR) requirement of the apex bank.
The drop in CIC alongside rising bank reserves highlights the central bank’s ongoing efforts to control inflation, stabilize the naira, and encourage financial intermediation.
Additionally, with the CBN maintaining a hawkish stance on monetary policy and implementing various reforms to stabilize macroeconomic indicators, these movements in money supply aggregates could signal a recalibration of liquidity levels in the financial system.
In January 2025, the apex bank launched a new naira payment solution aimed at enhancing payment turnaround time for Ministries, Departments, and Agencies (MDAs) by 70%.
The CBN said the launch is an extension of its digital transformation project, “Digital First,” which was initiated by the CBN Governor, Olayemi Cardoso, in December 2023 as part of his commitment to modernizing the bank’s operations.
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