Currency outside banks drops to N4.8 trillion in July, lowest in eight months

Currency held outside Nigerian banks fell to N4.8 trillion in July 2026, its lowest level since November 2025, as the amount of cash circulating outside the banking system declined for the second consecutive month.

This is according to the latest data from the Central Bank of Nigeria (CBN).

The figure dropped by N118.7 billion, or 2.4%, from N4.92 trillion recorded in June, extending the decline from the N5.19 trillion reported in May.

The latest decline also brought currency outside banks further below the N5 trillion mark, reversing part of the increase recorded during the first half of the year.

What the data is saying

CBN data tracked by Nairametrics showed that currency outside banks stood at N5.25 trillion in January 2026 before falling to N5.19 trillion in February, N5.08 trillion in April, and N5.19 trillion in May. It then declined to N4.92 trillion in June and N4.8 trillion in July.

• On a year-to-date basis, currency outside banks has fallen by N450.2 billion, or 8.6%, from N5.25 trillion in January to N4.8 trillion in July.
• The decline in July coincided with a fall in total currency in circulation. Currency in circulation dropped from N5.52 trillion in June to N5.38 trillion in July, representing a monthly decline of N140.6 billion, or 2.5%.
• The figures indicate that less cash was being held outside the banking system during the month, although currency outside banks still accounted for the vast majority of currency in circulation.

The decline in currency outside banks came alongside a substantial increase in bank reserves.

CBN data showed that bank reserves rose from N34 trillion in June to N36.73 trillion in July, an increase of about N2.73 trillion, or 8.0%.

• Special intervention reserves remained unchanged at N329.4 billion during the period.
• The combination of rising bank reserves and falling…