Nigerians deposited N1.67 Trillion naira in 3 Months

Demand deposits in Nigerian banks have hit an all-time high of N20.18 trillion The amount is due to the naira swap of the CBN since it began the redesign policy A demand deposit is the money customers can withdraw without prior notice to banks Nigerians returned about N1.67 trillion to the banks between October 2022 and January 2023.

Following the launch of the Central Bank of Nigeria (CBN)’s naira redesign policy in October 2022, the total amount of money in demand deposit has hit N20.18 trillion.

Demand deposits surge Demand deposits, the money that can be withdrawn without notice, will reach a record £18.5 trillion in late October 2022, a 9% growth in three months, The Guardian reports. is telling.

Towards the end of January 2023, as the deadline for the return of old N200, N500, and N1,000 notes approached, Nigerians returned physical cash to banks, and savings rose by N4.37 trillion or by 27.6%. As of January 2022, the total money in demand deposit accounts in banks’ vaults was N15.8 trillion. Money outside banks declines Analysis reveals a decline in currency outside banks. In January, the volume of cash outside banks was about N788.9 billion, representing 30% of the N2.71 trillion recorded three months earlier.

Since 2011, the currency in circulation has remained above N1 trillion. The CBN said one of the reasons it embarked on the naira redesign policy is to reduce the amount of excess money outside the banking system.

CBN Governor, Godwin Emefiele, said the high volume of money held outside banks had crippled the ability of the financial system to create credits. Credit to the private sector has remained slow, at an average of 1% in the last three months. However, reports say there has been an upsurge in the short-term credit flow from commercial banks to the CBN since the beginning of the year, a reversal of historical figures, suggesting that commercial banks are now replete with idle funds.

The move is due to the naira redesign plans of the CBN announced by Godwin Emefiele in October last year.