Data from Central Bank of Nigeria has shown that the preference for electronics payment above cash is driving down the currency outside the banks.
The CBN stated, “Cash outside banks fell by 14.7 percent to N1.51tn at end-June 2018, compared with the deterioration of 18.9 percent at end-June 2017.
This echoed increased use of electronic payments channels during the evaluation period.
As a percentage of broad money, constituted 6.1 percent, compared with 6.7 percent at the end of 2017.”
Currency-in-circulation with the CBN fell by 12.0 percent to N1.9tn, compared with the deterioration of 14.0 percent at the end of June 2017.
Bank cash with the CBN grew by 3.1 percent to N4.45tn, in difference to the decline of 1.7 percent at the end of the first half of 2017.
The top bank further discovered that currency-in-circulation, which stood at N1.9tn as at the end of June 2018, represented an increase of 1.4 percent over the level in the matching period of 2017.
In terms of arrangement, the CBN noted that the collective volume of N5, N10, N20 and N50 banknotes, reduced to 27.0 percent, from 30.4 percent in the first half of 2017.
However, it added that the value dropped to 1.8 percent, from 2.0 percent in the matching period of 2017.
At the end of June 2018, the value of N200, N100, N20 and N10 banknotes in circulation rose by 7.2, 70.8, 6.8 and 9.1 percent, respectively.