Recall that the implementation of the Naira redesign and withdrawal of old banknotes by CBN sucked in about N1.81 trillion from the Currency Outside Banks, CoB, while crashing Currency-in-Circulation to N1.4 trillion in January 2023.
The CBN Money and Credit data for January showed that Nigerians in response to the initial deadline of January 31st, 2023 deposited N1.81 trillion into the banking system in January.
Consequently, CoB, fell MoM by 70 per cent to N788.9 billion in January 2023 from N2.6 trillion in December 2022.
Also reflecting the impact of the initial deadline, currency-in-circulation (CIC) fell MoM by 54 per cent to N1.38 trillion in January 2023 from N3 trillion in December 2022 amidst the naira scarcity experienced in the country.
Part of the reasons for the Federal Government’s redesigning of the naira was to mop up excess cash outside the banking system and to rein in inflation.
Credit vanguardngr.com
