Data obtained from the Central Bank of Nigeria have revealed that banks’ demand deposits rose by N1.1tn within a three month period to N16.89tn as at the end of March, 2022.
As at the end of January, the figures stood at N15.81tn and rose to N16.17tn at the end of February, according to the data.
The CBN also disclosed that the currency in circulation fell by N42.43bn between January and March.
The CBN revealed in its data on the currency that the currencies, which stood at N3.29tn as at the end of January, fell to N3.25tn by the end of March.
According to the apex bank, the currency in circulation refers to currency outside the vaults of the central bank; that is, all legal tender currencies in the hands of the general public and in the vaults of the Deposit Money Banks.
The CBN stated that it employed the “accounting/statistical/withdrawals and deposits approach” to compute the currency in circulation in Nigeria.
This approach involves tracking the movements in currency in circulation on a transaction-by-transaction basis.
