Due to the continuity of excess liquidity mop-up in the system, currency flow dropped by a 0.55 percent to N2 trillion in July, contrary to June which had N2.01 trillion standing.
A report from the Daily Times shows that at the investors & Exporters Foreign Exchange (I&E FX) window, the drop occurred when Naira traded at N360 against the dollar at the parallel market. Marginally it was weakened by 0.06 percent week-on-week (w/w) and resolved against the dollar at N363.46.
Culled from the official website of the Central Bank of Nigeria (CBN), it showed that in May, currency in circulation was at N2.11 trillion, lower than N2.16 trillion in April 2019.
Breaking down the figures, findings show that in March, currency in circulation was N2.15 trillion, compared to N2.24 trillion in February, while N2.14 trillion was reported by the apex bank in January this year.
Analysts held that the mop-up of excess liquidity from the system by the central bank was a move to curb inflation and stabilize the Naira against other currencies.
According to Finance experts, the cashless policy of the government ought to have given desired results but was impeded due to the inability of stakeholders to stop politicians from carrying cash during and after elections.
Speaking concerning the five-year policy thrust (2019-2024) which was kick-started by the apex bank in June, the CBN governor, Mr. Godwin Emefiele, said the apex bank “will reinvigorate its efforts at driving the cashless initiative across the country, due to the immense efficiency gains that will be derived from it, and the impact it could have on our financial inclusion drive.
“Given Nigeria’s large size, and the cost involved in building bank branches across the country, the payment department would support the spread and utilization of digital modes of transactions, so that every Nigerian will have access to financial services,” he explained.