MARKET NEWS

by Mathew Chima

Cash outside banks fell by N118.67 billion to N4.8 trillion in July 2026, extending the decline for a second consecutive month, according to the Central Bank of Nigeria (CBN).

Data analysed by TheCable Index showed that currency outside banks declined by 2.41 percent from N4.92 trillion in June to N4.8 trillion in July.

The July figure was the lowest recorded since November 2025, when currency outside banks stood at N4.91 trillion.

The latest decline followed a sharper N270.97 billion, or 5.22 percent, drop in June, when cash outside banks fell from N5.19 trillion in May.

CASH OUTSIDE BANKS DOWN N604 BILLION SINCE DECEMBER

Further analyses indicate that currency outside banks declined by N604.47 billion, or 11.18 percent, since December 2025, when it stood at N5.41 trillion.

The figure fell to N5.25 trillion in January and N5.19 trillion in February before dropping to N5.08 trillion in April.

It, however, rose to N5.19 trillion in May before declining in June and July.

Despite the recent decline, July’s figure remains above the N4.42 trillion recorded in July 2025 by N382.34 billion, or 8.65 percent.

The CBN data also showed that total currency in circulation fell by N140.61 billion, or 2.55 percent, to N5.38 trillion in July from N5.52 trillion in June.

Currency outside banks, therefore, accounted for 89.24 percent of total currency in circulation during the month, compared with 89.11 percent in June.

MONEY SUPPLY RISES AS DEPOSITS FALL

The decline in cash outside banks came as money supply increased, while demand deposits recorded a month-on-month decline in July.

Money supply rose by N5.52 trillion, or 4.14 percent, to N138.78 trillion in July from N133.25 trillion in June, according to the CBN data.

Demand deposits, which form part of narrow money, fell by N906.03 billion, or 2.28 percent, to N38.87 trillion during the same period.

Bank reserves, however, increased by N2.73 trillion, or 8.04 percent, to N36.73 trillion.

Credit to the government recorded the biggest decline among the credit components, falling by N6.11 trillion, or 15.27 percent, to N33.92 trillion from N40.03 trillion.

According to the CBN, credit to the private sector moved in the opposite direction, rising marginally by N171.8 billion, or 0.21 percent, to N83.43 trillion.