Connect with us
Advertise With Us

BUSINESS

Naira In circulation Rises To N1.79trn In October – CBN

Published

on


Kayode Tokede, Lagos –

The Central Bank of Nigeria (CBN) has disclosed that Naira in circulation has increased to N1.79 trillion in October 2017, a month-on-month (m-o-m) growth of 0.6 per cent.

CBN in September had reported N1.78 trillion in circulation, the second lowest, after N1.76 trillion it reported in July this year.

Data from the CBN on Naira in circulation was estimated at N1.86 trillion in August 2017, 5.6 per cent increase over N1.76 trillion it had reported in July.

The currency in circulation, which is the physical money used for transactions between consumers and businesses, had opened 2017 at N1.99 trillion and closed in February at N1.97 trillion, both retaining highest currency in circulation.

However, the apex bank’s total assets hits N22 trillion, a 2.3 per cent m-o-m increase over N21.6 trillion in prior month while total deposits rose by 4.6 per cent to N18.1 trillion from N17.3 trillion in August.

The depository corporations’ survey for September thus showed a 0.47per cent m-o-m increase in Broad Money to N21.95 trillion in September – as Net Foreign Assets (NFA) increased m-o-m by 3.26per cent to N10.05 trillion, thus offsetting a m-o-m 1.77per cent fall in Net Domestic Assets (NDA) to N11.90 trillion.

On asset creation, the increase in NDA resulted from a 0.61 per cent m-o-m rise in Net Domestic Credit (NDC) to N26.98 trillion, accompanied by a 2.58 per cent increase in Other Liabilities (net) to N15.08 trillion.

A breakdown of NDC showed a 2.89per cent m-o-m increase in Credit to the Government to N4.46 trillion which significantly outpaced the 0.11per cent increase in Credit to the Private sector to N22.02 trillion as the public sector continued to crowd-out the private sector.

The mild growth in credit to the private sector was, in part, informed by decreasing appetite for risk assets by lenders in the face of high yield safe assets. Increase in Broad Money also followed a 0.59per cent m-o-m decline in Quasi Money (near maturing short term financial instruments) to N11.89 trillion, accompanied by a 1.75per cent rise in Narrow Money to N10.06 trillion of which Demand Deposits increased by 3.12per cent to N8.63trillion.

Indicative of tightened monetary policy conditions, Reserve Money (Base Money) also increased m-o-m by 1.33per cent to N5.56 trillion as bank reserves increased m-o-m by 4.92per cent to N3.43 trillion.



Copyright LEADERSHIP.
All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from LEADERSHIP Nigeria Newspapers. Contact: editor@leadership.ng







Advertisement
Comments

MOST POPULAR

Pin It on Pinterest

Share This

Share this post with your friends!