CBN declares rise in banks reserves, drop in currency circulation
By Tunde Opalana
The Central Bank of Nigeria CBN has declared about N900 billion rise in banks reserves at the end of March , 2025.
In a most recent report, the apex bank declared N28.5 trillion at the end of March, as reserves kept in its custody by banks.
Banks reserves has been on the upward trend since the beginning of the year 2025 From N27.43 trillion in January, it rose to N27.6 trillion in February and N28.5 trillion in March.
This surge is attributable to a tighter monetary policy enforcement by the CBN, higher deposit inflows, and probably improved liquidity within the banking sector.
The surge in bank reserves could be attributed to restricted liquidity, or a deliberate policy by the CBN to rein in inflationary pressures.
The rise in reserves could better explain the decline of currency in circulation.
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In the report, the CBN declared a. 0.0.79% month-on-month decline since the begining of the year.
The report indicated that Nigeria’s currency in circulation declined to N5 trillion in March 2025 from N5.04 trillion in February 2025 and N5.24 trillion recorded in January 2025.
“This marks a cumulative decline of N240 billion or 4.58% in the first quarter of 2025.
“Drop in CIC may indicate increased cash mop-up by banks, a shift to digital transactions, or broader macroeconomic tightening,” the apex bank declared.
