The latest figures obatained from the Central Bank of Nigeria (CBN), on Wednesday showed that Currency in circulation dropped by N52.5bn from N2.35tn at the end of May to N2.29tn in June.
Recent figures showed that there was a steady rise in cash in circulation during the lockdown introduced in some states to contain the COVID-19 pandemic in the country.
The statistics showed that currency in circulation, which stood at N2.29tn at the end of March, rose to N2.3tn in April.
“Currency in circulation at end-November 2019 rose by 9.9 per cent to N2.2tn, in contrast to the decline of 0.4 per cent at the end of the third quarter of 2019.
“The development, relative to the level in the preceding quarter, reflected mainly the increase in its currency outside banks component and seasonal factors.
“Currency in circulation is defined as currency outside the vaults of the central bank; that is, all legal tender currency in the hands of the general public and in the vaults of the Deposit Money Banks,” the Apex bank said.
The CBN stated that it employed the “accounting/statistical/withdrawals and deposits approach” to compute the currency in circulation in Nigeria.
This approach involved tracking the movements in currency in circulation on a transaction by transaction basis, according to the bank.