Money in circulation records marginal first decline in 11 months

Money in supply, also known as currency in circulation, recorded a marginal first decline in 11 months following low economic activities.

Data from the Central Bank of Nigeria (CBN) showed that money in circulation dropped by 0.08 percent (month-on-month) to N3.650 trillion in January 2024, the first month in the year, compared to N3.653 trillion recorded in December 2023.

The last time the currency in circulation slowed was in February 2023, when it recorded N982.097 billion, the data indicated.

“It is the state of the economy. Currency in circulation is the reflection of the amount of economic activity taking place in an economy,” Muda Yusuf, chief executive officer of the Centre for the Promotion of Private Enterprise, said.

He noted that some businesses are not doing well due to the current macroeconomic challenges. According to him, another reason could be that some people are moving their cash into other assets.