Nigeria’s Currency-in-Circulation Drops By N332.4bn YTD In July

Latest data on the Central Bank of Nigeria (CBN) website shows that the quantum of money circulating within the nation’s economy reduced by N332.403bn or 15.4% in between January and July this year.
According to the CBN, currency-in-circulation dropped from its peak of N2.157tr in the festive period of December 2017, to N1.824tr.
Year-on-year, the figure however showed an increase by N55.741bn or 3.15% from N1.769tr at the end of July 2017; while month-on-month, currency in circulation dropped from N1.9tr, or N75.845bn representing 3.99% slide.
Between March and July, it reduced from N2.039tr, or N214.498bn or 10.51%.
As such, like the nation’s inflation rate, currency-in-circulation has dropped consistently month-on-month, since the end of March, with the biggest decline being between June and July.
Meanwhile, the CBN sustained its intervention in the inter-bank foreign exchange market by injecting yet another sum of $210m into various sums of the market on Tuesday, August 14, 2018.
At the session, the CBN offered $100m as wholesale interventions and allocated the sum of $55m each for Small and Medium Enterprises (SMEs) forex window and the invisibles sector, for customers requiring forex for Business/Personal Travel Allowances, tuition and medical fees, among others.
Confirming the figures in Abuja, the Acting Director, Corporate Communications at the CBN, Isaac Okorafor, expressed the management’s pleasure at the performance of the naira, noting that the currency had continued to enjoy stability against the dollar and other major currencies of the world in recent times.
Okorafor reassured the public that management would continue to intervene in the interbank foreign exchange market in line with its resolve to ensure liquidity in the forex market and maintain stability. He reiterated that the steps taken by the CBN in forex management had resulted in further reduction in the country’s import bills and accretion to its foreign reserves.
It will be recalled that the CBN last Friday, August 10, 2018, intervened in the Retail Secondary Market Intervention Sales (SMIS) to the tune of $327m in the agricultural and raw materials and CNY69m in the spot and short-tenored forwards.
The naira continued to maintain its strong stand against major currencies around the globe, exchanging for N360/$1 in the BDC segment of the market on Tuesday, August 14, 2018.
Also, the CBN will on Wednesday, August 15, 2018, sensitize stakeholders in Abuja and the adjoining States on the Bilateral Currency Swap Agreement between the CBN and the People’s Bank of China (PBoC) signed on April 27, 2018.