Currency in circulation hits N2.44b, says CBN

The currency in circulation increased by N240 billion between November and December 2019. This was stated in the Central Bank of Nigeria’s (CBN) Money and Credit Statistics report.

The report stated that at the end of the 2019 financial period, about N2.44 trillion was in circulation, rising from N2.2 trillion at the end of November. In October, about N2.05 trillion was in circulation.

The CBN said, “Currency-in-circulation at end-November 2019, rose by 9.9% to N2.2trillion, in contrast to the decline of 0.4% at the end of third quarter 2019. The development, relative to the level in the preceding quarter, reflected, mainly, the increase in its currency outside banks component, and seasonal factors.”

Meanwhile, an increase of 3.6% was recorded at the end of third quarter 2019 after total deposits at the CBN amounted to N14.35 trillion. This was attributed to 14.3% and 3.1% increase in the deposits of the Federal Government and the commercial banks, respectively.

According to the report by CBN, the Federal Government, banks and private sector total deposits were 47.4%, 35.9%, and 16.7%, respectively. Reserve money grew by 5.0% to N7.35 trillion at the end of November 2019, in contrast to the decrease of 13.5% at the end of the third quarter of 2019. This is due to an increase in Federal Government and banks’ deposits with the CBN.

Also, in the fourth quarter of 2019, the apex bank said it maintained the monetary policy rate at 13.50%. Meanwhile, broad money supply (M3), on a quarter-on-quarter basis, grew by 4.1% to N36.47 trillion at end-November 2019, compared with 0.4% and 8.1% increase at the end of third quarter 2019 and fourth quarter of 2018, respectively.

It was gathered that the development reflected wholly on the 2.0% increase in net foreign assets which more than offset the 1.2 and 10.6% decline in net domestic credit and other assets (net) of the banking system, respectively.

Broad money supply (M3) grew by 9.3% at end-November 2019 over the level at end-December 2018, compared with the growth of 5.1 and 16.4% at end of third quarter 2019 and fourth quarter of 2018, respectively.

CBN disclosed that the growth in (M3) reflected the 28.8% increase in domestic credit (net), which more than offset the 22.8% and 4.9% decline in net foreign assets and other assets (net) of the banking system, respectively.

It was also stated that at end-November 2019, Narrow money supply (M1) fell by 1.7% to N10,930.57 on a quarter-on-quarter basis, compared with the decline of 0.4% at the end of third quarter 2019.