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The amount of cash circulating outside Nigeria’s banking system declined by ₦486 billion, reaching its lowest level in seven months, according to the latest financial data.
The drop reflects an increase in the volume of cash returned to banks, a trend analysts attribute to the growing adoption of digital payment platforms, tighter monetary policies and efforts to strengthen financial inclusion.
Experts say the decline in cash held outside banks could improve liquidity within the financial system, enhance the effectiveness of monetary policy and reduce the volume of idle cash circulating in the economy.
Despite the development, stakeholders note that cash remains an essential means of payment in many rural and informal sectors, where access to digital financial services is still limited.
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