The Central Bank of Nigeria (CBN) has reported a decline in the currency in circulation (CIC), which fell to N5 trillion in March 2025. This drop represents a 0.79% month-on-month decrease from N5.04 trillion in February 2025 and N5.24 trillion in January 2025, signaling a cumulative fall of N240 billion or 4.58% during the first quarter of 2025.
Currency in circulation refers to the total amount of cash, including coins and paper currency, issued by the CBN and used for transactions outside of the banking system. The report highlights the reduced amount of physical cash circulating among businesses and the public during this period.
In contrast, banks' reserves with the CBN saw an uptick, rising to N28.5 trillion in March 2025, up from N27.6 trillion in February and N27.43 trillion in January. This increase could be attributed to higher deposit inflows, controlled liquidity measures, or the CBN's efforts to manage inflation. It might also reflect greater adherence by commercial banks to the Cash Reserve Ratio (CRR) requirements.