In October, Currency Outside of Banks Increased by N108.67 billion to N2.84 trillion.

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According to CBN statistics, the value of cash held outside of banks increased from N2. 54 trillion reported in the similar time of 2021 by 11. 07% Year-on-Year (YoY). He stated that the inflation rate is anticipated to climb further and that prices of particular products and services are likely to rise when there is an increase in the amount of money in circulation.

To maintain economic stability, the CBN must create more money since mutated naira notes are predicted to rise.

Speaking from a different angle, Mr. Wole Adeyeye, an analyst at PAC Holdings, chose to argue that a double-digit inflation rate is to blame for the increase in CIC, highlighting the fact that political expenditure is also a contributing cause.

However, the CBN statistics also showed that the government had received credit from commercial banks. Statistics show that from N34. 62 trillion in October 2021, commercial banks’ lending to the private sector increased by 17.85 percent annually.


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