Currency in Circulation Rises to N2.329tn

• Currency in Circulation Rises to N2.329tn

The Central Bank of Nigeria has said the total currency in circulation rose by 20.9 per cent at the end of December 2018 quarter to N2.329 trillion.

This, according to the apex bank, was higher by 1.4 per cent when compared with the amount recorded by the end of September 2018 quarter.

The increase was attributed to 19.4 per cent and 7.5 per cent rise in its currency outside banks and demand deposit components, respectively.

Total deposits at the central bank rose to N15.7 trillion at the end of December 2018, up by 6.5 per cent when compared with the September 2018 quarter.

On the money market, the apex bank disclosed in its 2018 fourth-quarter report, that adequate liquidity was provided throughout the quarter to ensure market stability. Suggesting that the falling foreign exchange reserves might have been weighed upon by the CBN intervention.

Some of the liquidity also came in as fiscal injections, Federal Government Bonds, Nigerian treasury bills and maturing CBN bills.

However, outflow such as the sale of CBN bills, FGN securities and provisioning and settlement for foreign exchange purchases, impacted on market liquidity during the quarter.