Currency Outside Banks Drops by N104.76bn After CBN Rate Cut
By Aboki Forex —
The amount of cash held outside the banking system fell by N104.76 billion between February and April 2026. This followed the Central Bank of Nigeria’s decision to lower interest rates at its first Monetary Policy Committee meeting of the year.
Findings by The PUNCH showed that currency outside banks declined from N5.19 trillion in February 2026 to N5.08 trillion in April 2026. The MPC had reduced the Monetary Policy Rate to 26.5 percent in February.
The figures represent a 2.02 percent drop within two months after the rate cut. The apex bank did not release currency data for March 2026, making a month-on-month comparison impossible.
Further analysis showed that total currency in circulation also declined during the period. It dropped by N63.46 billion from N5.71 trillion in February to N5.65 trillion in April. The proportion of currency circulating outside the banking system also moderated slightly.