Inflation may worsen as total currency in circulation hits 3-month high

  • Weekly Giveaway for our active users. N50,000 per Week. Do you want to contribute to this community? We are looking for contribution? What is hot right now? Sign up and get in on the ground floor of the newest, fastest growing Nigerian forum!

Simonson Harry

Well-Known Member
Apr 21, 2020
452
288
63
22
May 15, 2020

Inflationary pressure on the Naira might strengthen in the short term as the total currency in circulation enlarged from N2.29 trillion at the end of March to N2.3 trillion at 30th April, its highest in three months.

This translates to N11.38 billion growth going by the data gleaned from the Central Bank of Nigeria (CBN)website Thursday.

The total circulated currency in the country had dipped by N61 billion from N2.24 trillion at the end of January to N2.18 trillion at the same period in February.

Between the end of October 2019 and last December, the figure had escalated from N2.05 trillion to N2.44 trillion, reflecting a 19% rate of increase in just a quarter.

“Currency-in-circulation at end-November 2019 rose by 9.9 per cent to N2.2tn, in contrast to the decline of 0.4 per cent at end of third quarter 2019.

“The development, relative to the level in the preceding quarter reflected mainly the increase in its currency outside banks component and seasonal factors,” a statement from the CBN stated.

By November 2019, total deposits at the central bank were valued at N14.35 trillion, having risen by 3.6 per cent over the figure reported as of third quarter 2019.

The CBN linked the growth to the expansion in the size of the fund mopped up from commercial banks and the Nigerian government, which rose by 3.1 per cent and 14.3 per cent in that order.

The Nigerian government accounted for 47.4 per cent, the private sector 35.9 per cent and banks 16.7 per cent of the total deposits at the apex bank.

Reserved money grew 5 per cent to N7.35 trillion at November ending relative to a 13.5 per cent plunge posted at third quarter 2019, the CBN stated.