In a significant, albeit marginal, shift, January 2026 saw a notable decrease in both the currency held outside the banking system and the total currency in circulation. This development, as reported by Nume Ekeghe, signals a potential return to normalcy in cash demand following the usual festive season surge.
Specifically, currency outside the banking system experienced a decline of 3.66%, while the overall currency in circulation saw a slight dip of 0.03%. These figures suggest that the heightened demand for physical cash, typically observed during year-end festivities and holidays, has begun to moderate.
This trend could indicate several things: a greater embrace of digital payment methods, increased confidence in the banking sector leading to more deposits, or simply a post-holiday unwinding of cash holdings. Whatever the underlying factors, financial analysts will be watching closely to see if this trend continues in the coming months, as it can offer valuable insights into economic activity and consumer behavior.
Source: Original Article
