Nigeria’s Currency-in-Circulation Drops By N190.04bn In January- CBN

Nigeria’s Currency-in-Circulation Drops By N190.04bn In January- CBN

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Post Views: 299 New data gleaned on the website of the Central Bank of Nigeria (CBN), Tuesday, showed that currency-in-circulation stood at N2.139tr a...

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New data gleaned on the website of the Central Bank of Nigeria (CBN), Tuesday, showed that currency-in-circulation stood at N2.139tr at the end of January, representing a N190.04bn, or 8.16% from the N2.329tr in December.
Year-on-year however, the figure fell by N194.222bn, or 9.98% from N2.329tr recorded in January 31, 2018.
A further review of the CBN data showed that currency-in-circulation has remained well above the N2.0tr range on a consistent basis since November last year, when it stood at N2.1tr.
Before then, the level last touched N2.0tr at the end of March 2018, at N2.039tr; while the lowest within the period was the N1.824tr achieved in July.
It is however not impossible that the sustained rise in currency outside of bank vaults in the country could be related to the increased spending occasioned by the politicking ahead of the ongoing general elections, which began with a very acrimonious Presidential duel leading to the election held on February 23, 2019.
At their January meeting, members of the CBN’s Monetary Policy Committee (MPC) expressed concerns at the resurgence in inflationary pressure in the economy, noting concerns by the NBS that the “increase in headline inflation was driven by food inflation which rose to 13.36% in December 2018 from 13.3% in November, while Core inflation declined marginally to 9.77% in December 2018 from 9.79% in the previous month.”
Total deposits at the CBN for the period amounted to N15.703tr, indicating a 6.5% increase over the level at end-September 2018, a growth “attributed to 13% and 9.5% rise in the deposits of the private sector and Federal Government, respectively.”
The shares of the Federal Government, banks and private sector deposits at the CBN were put at 49.6%, 30.6% and 19.8%, respectively; while reserve money rose by 4.9% to N7.135tr, compared with an increase of 7% in September, a development it said “reflected the increase in total bank reserves.”

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