CURRENCY IN CIRCULATION ROSE TO N2.44TN IN 2019
Currency in circulation rose from N2.2tn at the end of November to N2.44tn at the end of 2019 financial period. Latest data obtained from the Central Bank of Nigeria revealed that the currency in circulation was N2.05tn at the end of October 2019. The Apex Bank stated that, “Currency-in-circulation at end-November 2019, rose by 9.9 per cent to N2.2tn, in contrast to the decline of 0.4 per cent at 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.” It added that the total deposits at the CBN amounted to N14.35tn at end-November 2019, indicating an increase of 3.6 per cent above the level at end of third quarter 2019.
The rise was attributed to 14.3 per cent and 3.1 per cent increase in the deposits of the Federal Government and the commercial banks, respectively. Of the total deposits at the CBN, it stated that the shares of the Federal Government, banks and private sector deposits were 47.4 per cent, 35.9 per cent and 16.7 per cent, respectively.
It added that reserve money grew by 5.0 per cent to N7.35tn at the end of November 2019, in contrast to the decrease of 13.5 per cent at the end of third quarter of 2019. The development reflected an increase in Federal Government and banks’ deposits with the CBN, it added.
The bank also said it maintained the monetary policy rate at 13.50 per cent in the fourth quarter of 2019. Broad money supply (M3), on quarter-on-quarter basis, grew by 4.1 per cent to N36.47tn at end-November 2019, compared with 0.4 per cent and 8.1 per cent increase at the end of third quarter 2019 and fourth quarter of 2018, respectively.
The development reflected, wholly the 2.0 per cent increase in net foreign assets, which more than offset the 1.2 and 10.6 per cent decline in net domestic credit and other assets (net) of the banking system, respectively. Over the level at end-December 2018, broad money supply (M3) grew by 9.3 per cent at end-November 2019, compared with the growth of 5.1 and 16.4 per cent at end of third quarter 2019 and fourth quarter of 2018, respectively.
The growth in (M3) reflected, wholly, the 28.8 per cent increase in domestic credit (net), which more than offset the 22.8 per cent and 4.9 per cent decline in net foreign assets and other assets (net) of the banking system, respectively. Narrow money supply (M1), on quarter-on-quarter basis, fell by 1.7 per cent to N10,930.57 at end-November 2019, compared with the decline of 0.4 per cent at the end of third quarter 2019.