Recent statistics from the Central Bank of Nigeria highlight a significant trend in the country's financial landscape, revealing that a staggering 90% of cash is held outside the banking system. This situation raises concerns about the public's trust in financial institutions and their growing preference for physical currency. The publication provides the following information: this trend could have far-reaching implications for the economy and the future of digital finance in Nigeria.
Current Cash Circulation in Nigeria
According to the Central Bank, approximately 447 trillion naira is currently in circulation outside of banks, indicating a shift in how Nigerians manage their finances. This trend suggests a deepening skepticism towards banks, as many individuals and businesses opt to keep their cash in hand rather than depositing it in financial institutions.
Impact on Monetary Policy and Economic Growth
Despite a reported decrease in the overall money supply, the amount of cash retained by the public has seen a slight uptick. This paradox complicates the Central Bank's monetary policy efforts and poses challenges for economic growth as the reliance on cash can hinder the effectiveness of financial systems and limit access to credit.
In a related development, a significant security breach was reported on the Base blockchain, revealing ongoing risks in decentralized finance. For more details, see the full report on the exploit here.
