85% of cash in circulation outside banking system – CBN
The Central Bank of Nigeria (CBN) has said out of the N3.2 trillion in circulation, N2.7 trillion representing about 85 percent of the bank notes, is outside the banking sector.
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Mrs Amina Giwa, the Deputy Director of the Currency Department of the apex bank disclosed this in Port Harcourt, the Rivers State capital, at the ongoing 2022 Nigeria Deposit Insurance Corporation (NDIC) FICAN Workshop Programme with the theme: ‘Boosting Depositor’s Confidence Amidst Emerging Issues and Challenges in the Banking System’.
Giwa, while presenting a paper entitled: ‘Redesign of Naira: Benefits to the financial system and the Nigerian economy, said 85% of cash in circulation was found to be constantly outside the banks over the years.
She also gave insights into the reasons for the redesign of the Naira saying it is to fight against counterfeiting of the currency and discourage hoarding among other things.
According to the Deputy Director, 99% of counterfeit discovered are in the three highest denominations including N1000, N500, and N200 notes, adding that the circulation of counterfeit banknotes can undermine financial stability and also weaken national economies and jeopardize livelihoods.