Currency in Circulation Hit N1.6tr

The central Bank of Nigerian (CBN) has said that the value of currency in circulation increased by 21percent to N1.631 trillion in the fourth quarter of 2012, compared to the previous quarter.

The CBN said this in its economic report for the fourth quarter of 2012 obtained from its website. It stated that as at the period under review, total deposit at the CBN amounted to N7.350.trillion, indicating an increase of 6.9 per cent compared to the preceding quarter.

The development reflected the 7.5, 14.6 and 5.7 per cent increase in the deposits of Deposit Money Banks (DMBs), private sector and federal government, respectively, the banking sector regulator said.

“Of the total deposits, the shares of the federal government, banks and ‘others’ were N4.758 trillion (64.7 per cent), N1.900 trillion (25.9 per cent) and N691.61 billion (9.4 per cent), respectively.

“Consistent with the trends in DMBs’ deposits with the CBN, reserve money (RM), increased by 13.3 per cent to N3.532 trillion, from N3.117 trillion at the end of the preceding quarter,” it explained.

It also showed that “The total Standing Lending Facility (SLF) granted during the review period was N1.196 trillion, compared with N6.537 trillion in the third quarter of 2012. The decrease in the SLF demanded and granted was attributed mainly to the appreciable liquidity in the market and the imposition of some restrictions on the discount window.”

Similarly, the value of Commercial Paper (CP) held by DMBs declined in the fourth quarter by 2.50 per cent to N1.17 billion at the end of the fourth quarter of 2012, compared to a decline of 40 per cent at the end of the preceding quarter.

Thus, it showed that CP constituted 0.02 per cent of the total value of money market assets outstanding, same as at the end of the preceding quarter.

Also, the value of Bankers’ Acceptances (BAs) held by banks, according to the report; fell by 42.2 per cent to N9.9 billion at the end of the review quarter, compared to a decline of 19.1 per cent at the end of the third quarter.