Currency In Circulation Drops To N5 Trillion – Report

As of March 2025, the total amount of naira in circulation decreased to N5 trillion, down from N5.04 trillion in February and N5.24 trillion in January 2025. This reduction in physical currency circulating in the economy is part of efforts to control inflation and ensure economic stability. The decrease indicates that the Central Bank of Nigeria may be taking measures to regulate the money supply and reduce inflationary pressures.

The increase in the Central Bank of Nigeria’s (CBN) bank reserves to N28.52 billion in March 2025, up from N27.57 billion in February 2025, suggests a positive shift in the country’s financial reserves. This increase from January’s N27.43 billion shows a steady rise, possibly indicating improved financial stability. However, the special intervention reserves have remained constant at N284.36 million during this period, which means no major changes were made in that segment of the reserves.

These figures reflect the CBN’s efforts to manage both its reserves and currency in circulation, likely aiming to stabilize the economy and ensure liquidity for the country’s financial needs.

Yes, the decrease in the money supply for February 2025 reflects the Central Bank of Nigeria’s ongoing efforts to manage inflation and liquidity in the economy. This reduction is part of broader measures to stabilize the currency and maintain economic balance. The earlier growth in currency in circulation through 2024 indicates that there was a higher volume of money circulating, which could contribute to inflationary pressures. By reducing the money supply, the CBN aims to tighten liquidity, control inflation, and potentially stabilize the naira.

The trend shows that the CBN is actively managing economic conditions by adjusting the money supply and monitoring currency circulation. This approach helps ensure that inflation is kept in check, financial stability is maintained, and investor confidence remains intact.