Currency outside banks rises to N2.2trn in Nigeria as Cardoso plans to end old CBN policies

Data from the Central Bank of Nigeria (CBN) shows that currency outside banks increased monthly by N90 billion to N2.29 trillion in August 2023 from N2.2 trillion recorded in July.

Money outside banks had risen steadily since March this year when the Supreme Court halted the implementation of CBN’s demonetization policy.

CBN withdrew N1.81 trillion from circulation in January

The naira redesign policy of the CBN saw the withdrawal of N1.81 trillion from Currency outside the banks and crashed money in circulation to N1.4 trillion in January 2023.

Vanguard reports that banks’ credit to the government increased monthly by 0.62% from N32.2 trillion in July to N32.5 trillion in August.

Also, credit to the private sector increased by 1.1% to N54.7 trillion from N54.1 trillion.

The development led to a 0.92% rise in net domestic credit to N87.3 trillion in August from N86.5 trillion in July 2023.

The New CBN governor promises bold monetary reforms

Meanwhile, the new CBN Governor, Olayemi Cardoso, has revealed that one of his primary objectives is stabilizing the naira, which recently hit N1,000 to a dollar.

Cardoso revealed during his public screening at the Senate on Tuesday, September 26, 2023, that he would abandon most of the policies of his predecessor, Godwin Emefiele.

Amon the policies, Cardoso said, is stopping the apex bank’s multiple intervention programmes, such as the Anchor Borrowers Programme and the 100 for 100 policy.