Currency in circulation hits 3-month high, as CBN reportedly pushes N701.4bn into economy
Nigeria’s cash circulation surged significantly following the Supreme Court’s decision to extend the validity of old currency notes. This legal reversal prevented a further decline in physical money supply, highlighting the persistent reliance on tangible currency despite digital payment initiatives. The dominance of high-denomination banknotes underscores a structural preference for larger cash units within the economy. With the majority of value held in these specific notes, the financial system continues to operate heavily on physical assets rather than shifting toward electronic alternatives. This situation is highly relevant to open data initiatives, as it illustrates the challenge of transitioning from cash to digital transactions. Accurate tracking of such macroeconomic indicators is essential for policymakers and researchers monitoring financial inclusion and the effectiveness of monetary reforms in developing economies.
Source: ripplesnigeria.comPublished on 2023-04-20