Currency in circulation stands at N5.4b

The currency in circulation within the Nigerian economy but outside the banking system stood at N5.4 billion at the end of October 1987.
The October figure showed an increase of about N0.4 billion when compared with the September figure of N5 billion.
Figures with the Central Bank shows that currency in circulation but outside the banking system have been on the rise since October 1986.
At the end date, the figures showed that money outside the banking system was valued at N4.8billion.
Financial experts are worried about the unabated rise in outside money.

According to some monetary economists in banks, money outside the banking system make it difficult for monetary policy makers to effectively monitor the economic impact of monetary policies.
According to them, money outside the banking system has a leakage effect on the economy.
If such monies were within the banking system, they could have been channelled to productive uses.
The high level of money outside the banks they contend show the low level of banking habits in the country. It also show that the country is grossly under banked.
According to CBN, figures money kept idle in banks have remain fair stable.
In October 1986, about N300 million was in bank’s vault. This remained the same for September and October 1987.

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