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Currency in circulation rises to N1.574tn

By on April 27, 2014

The total value of the currency in circulation in the Nigerian economy increased slightly to N1.574 trillion at the end of March, compared to the N1.558 trillion it was at the end of February, data obtained from the Central Bank of Nigeria (CBN) has revealed.

Also, broad money (M2), which generally is made up of demand deposits at commercial banks and monies held in easily accessible accounts increased to N15.700 trillion as at March, from N15.318 trillion at the end of February.

In addition, Narrow Money (M1), which includes all physical monies such as coins and currency along with demand deposits and other assets held by the central bank, also grew from N6.663 trillion the previous month, to N6.892 trillion in the month under review.

According to the latest central bank money and credit statistics for March obtained yesterday, the total amount of Deposit Money Banks’ (DMBs’) reserves with the CBN declined to N3.462 trillion as at March, as against the N3.7 trillion it stood at the end of February.

Bank reserves are DMBs’ deposits with the central bank that are not to be lent out. It is held as part of risk management measures.

Furthermore, the report showed that currency outside banks reduced from N1.258 trillion the previous month, to N1.226 trillion in the month under review, while demand deposits which are funds held in an account from which deposited funds can be withdrawn at any time without any advance notice to the depository institution increased from N5.375 trillion as at February, to N5.665 trillion in March.

However, credit to the private sector increased slightly from N16.668 trillion in February, to N16.783 trillion in the month under review. Net Domestic Assets also grew marginally to N8.087 trillion in March, from N7.761 trillion the previous month, while Net Foreign Assets climbed marginally to N7.613 trillion in the month under review, as against the N7.557 trillion it attained the previous month.

The central bank had indicated mixed developments in banks’ deposit and lending rates in January.

With the exception of the one-month deposit rate, all other deposit rates had trended upward. While the prime lending rate trended downward, the maximum lending rate rose during the review month.

Similarly, the margin between the average savings deposit and maximum lending rates in January had narrowed by 0.12 per cent point to 22.25 per cent.

 

 

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One Comment

  1. onuigbo

    April 27, 2014 at 3:38 pm

    Someone is cooking out these numbers. Only an insane person in Nigeria mentions coins as a means of buying and selling. We love make belief, abee! How can you talk of increase of currency in circulation, when the CBN has gone cashless, and petty traders are looking for low currency nominations for change in their transactions. No wonder, data supplied here are never taken seriously or decisions made from them fail.