Currency circulation rose to N2.16tn in April — CBN
Written by Henry on July 26, 2019
At N2.158tn, currency-in-circulation, on month-on month basis, rose by 0.3 per cent at end-April 2019, the Central Bank of Nigeria has said.
The apex bank said this in its first quarter report on currency-in-circulation and deposits.
This was in contrast to the respective decline of 3.9 per cent and four per cent at the end of the preceding month and the end of the corresponding period of 2018.
The development relative to the preceding month reflected the increase in demand deposit component.
Deposits of the Federal Government, banks and the private sector with the CBN, on month-on-month basis, rose relative to the level at the end of the preceding month.
Overall, aggregate deposit at the CBN increased by 12.8 per cent to N15.75tn at the end of April.
Of the total deposits at the CBN, the shares of the Federal Government, banks and the private sector were 42.4 per cent, 36.8 per cent and 20.8 per cent respectively.
Reserve money rose by 9.7 per cent to N7.948tn at the end of April.
The upward movement in reserve money reflected mainly the 13.7 per cent increase in DMBs’ deposits with CBN.
Currency in circulation dropped by N189.33bn to N2.14tn at the end of January 2019 from N2.33tn as of December 2018, according to CBN.
Currency in the country is issued to Deposit Money Banks through the branches of the CBN and unfit notes are retrieved through the same channel.
Some experts linked the fall in currency in circulation to the increase in electronic transactions through the use of Point of Sale terminals and Automated Teller Machines.
The currency in circulation at the end of December 2018 had risen by 20.9 per cent compared with the growth of 1.4 per cent at the end of September 2018.
The development relative to the preceding quarter reflected mainly the 19.4 per cent and 7.5 per cent increases in 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.