Currency in circulation increases to N2.907trn in 2020

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Currency-in-Circulation (CIC) increased by 19.06 per cent to N2.907 trillion as at the end of December 2020 from N2.441 trillion reported in 2019.

The recent report released by Currency operations department of the Central Bank of Nigeria said that the growth in CIC reflected the continued dominance of cash in the economy.

Analysis of the CIC shows that a greater proportion was in higher denomination banknotes (N100, N200, N500 and N1000). It said that the higher denomination banknotes together accounted for 63.47 per cent and 98.08 per cent of the total CIC, in terms of volume and value, respectively.

The volume of lower denomination banknotes (N5, N10, N20, N50), accounted for 28.43 per cent of the total CIC and 1.92 per cent, in terms of value as at end-December 2020.

The report said that in 2020, a total of 173,585 boxes of banknotes valued at N980,758.00 million was

processed, compared with 260,651 boxes of banknotes valued at N1,533,729.00 million in 2019.

This according to the CBN represents a decrease of 33.40 per cent in the number of boxes or N552,971.00 million in value of processed banknotes.

To maintain the integrity of the banknotes in circulation, the Apex Bank, in collaboration with security agencies intensified efforts at curbing incidences of counterfeiting in the period under review.

The apex bank stated that a total of 67,265 pieces of counterfeit notes with a nominal value of N56.83 million was confiscated in 2020, indicating a 20.80 per cent decrease in volume and 12.18 per cent decrease in value, compared with 84,934 pieces valued at N64.71 million in 2019.

The Global standard for number of counterfeit per million is 100. The ratio of counterfeit notes to volume of banknotes in circulation was 13 pieces per million in 2020, compared to 20 pieces per million banknotes in 2019. The N1000 and N500 denominations constituted the most counterfeited, accounting for 69.06 percent and 30.79 per cent, of the total counterfeit notes in 2020, respectively.

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