BUSINESS

CBN Refutes Scarcity Of Local Currency In Circulation

 

The Central Bank of Nigeria (CBN) on Thursday disclosed that it has sufficient stock of local currency notes in circulation, stressing that cash scarcity in some locations is due largely to high volume withdrawals from the apex bank branches by Deposit Money Banks (DMBs) and panic withdrawals by customers from the automated teller machines (ATMs).

The Director, Corporate Communications, CBN, Isa AbdulMumin in a statement said the apex bank’s attention has been drawn to reports of the alleged scarcity of cash at banks, ATMs, Points of Sale and among  BDCs in some major cities across the country.

According to him, “Our findings reveal that the seeming cash scarcity in some locations is due largely to high volume withdrawals from the CBN branches by Deposit Money Banks (DMBs) and panic withdrawals by customers from the ATMs

“While we note the concerns of Nigerians on the availability of cash for financial transactions, we wish to assure the public that there is sufficient stock of currency notes for economic activities in the country. The branches of the CBN across the country are also working to ensure the seamless circulation of cash in their respective states of operation.

“Members of the public are, therefore, advised to guard against panic withdrawals as there is sufficient stock to facilitate economic activities. Nigerians are also advised to embrace alternative modes of payment, which would reduce pressure on using physical cash.”

According to findings,  currency in circulation stood to N2.76trillion as of September 2023, a 14.5per cent Year-on-Year (YoY) decline from N3.23 trillion reported September 2022, according to the CBN latest data.

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Currency in circulation refers to the amount of cash–in the form of paper notes or coins–within a country that is physically used to conduct transactions between consumers and businesses.

The N2.76trillion currency in circulation, according to CBN is the highest so far in 2023.

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