Increased deposits at CBN raises currency in circulation to N2.329tn

The currency in circulation at the end of December 2018 rose by 20.9 per cent to N2.329tn, compared with the growth of 1.4 per cent at the end of September 2018, the Central Bank of Nigeria disclosed this in its 2018 fourth quarter report.

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

Total deposits at the CBN amounted to 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 was attributed 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.

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.

Liquidity was buoyed by inflow from fiscal injections, Federal Government bonds, Nigerian treasury bills and maturing CBN bills.

Outflow, such as the sale of CBN bills, FGN securities and provisioning and settlement for foreign exchange purchases, impacted on market liquidity.

Overall, banks continued to access the intra- day and standing facilities window to meet their short-term liquidity needs during the review quarter.

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 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.

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