Nigeria saw less money outside its banks in July 2024. The amount went down to N3.66 trillion. This is the second time it went down this year.
In June, there was N3.79 trillion outside the banks. That means there’s now 3.32% less money outside banks. The Central Bank of Nigeria (CBN) is working hard to get people to keep their money in banks.
In a previous drop, the amount of money outside banks only fell by 0.62% from March to April. It went from N3.63 trillion to N3.61 trillion. This means that the recent drop is a lot bigger.
More Currency in Circulation
Even though there’s less money outside banks, the total money in use went up a little. In June, it was N4.05 trillion and in July, it was still N4.05 trillion, a tiny increase of 0.12%.
This small increase shows that people might be using money more wisely. Maybe more people are paying with cards or online because of new rules to control cash use.
It was also noted that although the total money in use rose to N4.05 trillion, the share of money outside banks dropped to 90.39% in July from 93.59% in June.
This is a big deal because it means the efforts to make people use banks more are starting to work.
Key Points to Know
In June 2024, the total amount of money in use went over N4 trillion for the first time, reaching N4.05 trillion.
Also in June, the money outside banks was higher than ever at N3.79 trillion. This showed that more money was being used and many people preferred to keep cash at home.
But in July, even though the total amount in use was still high, the money outside banks went down.
This drop may show that people are starting to trust banks more and keep their money there.
When more money is in banks, the Central Bank can control the economy better. It helps in managing inflation and keeps the economy steady.
If more people use banks, it means the whole country can track money better. There’s less chance of money getting lost or stolen, and it makes the economy more stable.
In July 2024, inflation also went down to 33.40%. It was higher in June 2024 at 34.19%. This was the first time the inflation rate dropped since December 2022 when it was 21.34%.
The National Bureau of Statistics (NBS) shared this information in their report for July 2024.