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Currency in circulation hits N2.32trn, CBN report says

Currency in circulation hits N2.32trn, CBN report says

The fourth quarter 2018 report just released by the Central Bank of Nigeria, CBN, has shown that currency in circulation as at the end of December, 2818 rose 20.9 percent to stand at N2.32 trillion.

According to the CBN report, the development relative to the preceding quarter reflected mainly 19.4 per cent and 7.5 per cent increase in its currency outside banks and demand deposit components respectively.

Also, the report puts the total deposits at the CBN at N15.7tn at the end of December 2018, indicating a 6.5 per cent increase above the level at the end of September 2018.

The increase, the CBN said is attributable to 13.0 per cent and 9.5 per cent rise in the other deposits of the private sector and the Federal Government respectively.

Of the total deposits at the CBN, the shares of the Federal Government, banks and private sector deposits were 49.6 per cent, 30.6 per cent and 19.8 per cent respectively.

Read also: Nigeria’s foreign reserve plunges to $42.8bn

Furthermore, the report showed that reserve money rose by 4.9 per cent to N7.135tn at the end of December 2018, compared with the increase of 7.0 per cent at the end of September 2018. The development reflected the increase in total bank reserves.

On money market development, the CBN disclosed that it was generally stable in the fourth quarter of 2018, as liquidity was buoyed by inflow from fiscal injections, Federal Government bonds, Nigerian treasury bills and maturing CBN bills, while outflow, such as the sale of CBN bills, FGN securities and provisioning and settlement for foreign exchange purchases, impacted on market liquidity.

Overall, the report indicated that banks continued to access the intra- day and standing facilities window to meet their short-term liquidity needs during the review quarter, while showing that total value of money market assets outstanding at the end of the fourth quarter of 2018 was N11.897tn, showing an increase of 0.4 per cent, compared with 1.4 per cent increase, at the end of the third quarter of 2018.

The increase, the report said was as a result of the 12.5 per cent and 1.5 per cent increase in bankers’ acceptances and FGN bonds outstanding, respectively, during the quarter under review.

Ripples Nigeria

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Ripples Nigeria

We are an online newspaper, very passionate about Nigerian politics, business and their leaders. We dig deeper, without borders and without fears.
www.ripplesnigeria.com

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