• World
  • Columnist
  • Commodities
  • WORLD BUSINESS & ECONOMY
  • Executive Knowledge Series
  • Finance
  • Manufacturing
  • Markets
  • Risk & Governance
  • Small Business
  • Technology, Media & Innovation
  • Comments
  • Business AM WebTV
  • Login

Businessamlive
  • FRONTPAGE
  • FINANCE
    • AllAsset ManagementAuditBankingBondBudgetCapital MarketsC&I LeasingCurrencyDealDebt marketForexFund RaisingFundingGovernmentHedge FundsInsuranceInvestmentInvestorInvestor ServicesMergers & AcquistionsMoney marketTreasury BillsMortgagePensionsPersonal financePonziQuantitative EasingshareTaxationTSAWealth Management
      Companies

      Total Nigeria, Mixta, Valency, list new CPs on FMDQ platform to enhance financial markets development

      17 hrs

      Finance

      Amidst N32.22trn public debt, analysts say Nigeria’s external debt service manageable

      22 hrs

      Finance

      Stringent regulations, business environment forced Stanbic IBTC out of BDC business

      January 15, 2021

      Finance

      Cautious equities trading see gains in Flour Mills, Mobil, Wapco push market cap to ₦21.09trn

      January 15, 2021

  • MARKETS
  • ECONOMY
    • AllAfricaAgricAirportsAmericaAsiaAustraliaBreakthroughDealEuropeForeign InvestmentsforexGlobal marketGovernanceIMFMiddle EastNECANigeriaOutlookRich listSouth AfricaSport BusinessTradeU.KWest AfricaWorld Economic forum
      Commodities

      LME contemplates permanent shutdown of historic trading ring

      5 hrs

      WORLD BUSINESS & ECONOMY

      China’s economy grows 2.3%, with potentials to overtake U.S. beyond expectations

      18 hrs

      WORLD BUSINESS & ECONOMY

      Uber leads with 30% as 10 biggest startup layoffs in 2020 reach 25,000

      19 hrs

      Companies

      TIPP Oil, German lubricant maker, targets 2021 Nigeria launch with eco-friendly scheme  

      19 hrs

  • COMMODITIES
  • ENERGY
    • AllConferenceElectricityOil and GasPowerRenewable
      Companies

      TIPP Oil, German lubricant maker, targets 2021 Nigeria launch with eco-friendly scheme  

      19 hrs

      Frontpage

      Nigeria aims for cost efficiency, safety, value in oil sector with centre of excellence

      20 hrs

      Frontpage

      Sustainable energy: Minister estimates solution to cost Nigeria $4bn in annual spend

      22 hrs

      Frontpage

      NNPC receives $120.49m crude oil receipt in September  

      January 18, 2021

  • TECHNOLOGY
  • MANUFACTURING
  • ANALYSIS
    • Analyst Insight

      CBN meeting and NSE in focus

      January 18, 2021

      Analyst Insight

      Once again, fiscal stimulus takes centre stage

      January 18, 2021

      Analyst Insight

      Organisations must learn from the WhatsApp story  

      January 18, 2021

      Analyst Insight

      Data privacy maturity model in organisations

      January 11, 2021

Finance

Currency in circulation hits N2.39tn

August 7, 2020377 views0 comments

The stock of money in circulation in Nigeria increased by N95.13bn from N2.29tn at the end of June to N2.39tn in July, data from the Central Bank of Nigeria have shown.

The CBN data showed that currency in circulation, which stood at N2.3tn in April, rose slightly to N2.35tn as of the end of May.

The apex bank stated in its report titled ‘Currency-in-circulation and deposits at the CBN’ that currency-in-circulation on quarter-on-quarter basis fell by six per cent to N2.29tn at the end of March 2020, compared with a decline of 7.5 per cent at the end of the first quarter of 2019.

It noted that this was in contrast to the growth of 21.8 per cent recorded at the end of the fourth quarter of 2019.

The report said, “The development, relative to the level in the preceding quarter, reflected mainly the decline in currency outside depository corporations and the fall in vault cash, owing to the increase in Cash Reserve Ratio by the bank.

“The monetary authority’s liabilities to other depository corporations grew by 26.1 per cent to N7.85tn at end-March 2020, compared with the growth of 24.7 per cent and 23.6 per cent in the fourth quarter of 2019 and the first quarter of 2019 respectively.

“The development reflected the increase in CRR by the CBN.”

It added that reserve money grew by 17.1 per cent to N10.14tn at the end of March, compared with the growth of 23.9 per cent and 13.5 per cent in the fourth quarter of 2019 and the first quarter of 2019 respectively.

The development reflected mainly the 3.7 per cent growth in net foreign assets on the assets side and 26.1 per cent growth in total banks’ reserves on the liabilities side.

Currency in circulation is defined as currency outside the vaults of the central bank; that is, all legal tender currency in the hands of the general public and in the vaults of the deposit money banks, according to the apex bank.

The CBN stated that it employed the “accounting/statistical/withdrawals and deposits approach” to compute the currency in circulation in Nigeria.

This approach involved tracking the movements in currency in circulation on a transaction by transaction basis.

It said for every withdrawal made by a DMB at one of the CBN’s branches, an increase in the CIC was recorded, adding that for every deposit made by a DMB at one of the CBN’s branches, a decrease in the CIC was recorded.

The transactions are all recorded in the CBN’s CIC account, and the balance on the account at any point in time represents the country’s currency in circulation.

According to the apex bank, analysis of the currency in circulation showed that a large and increasing proportion of the naira outside the commercial banking system was held by the general public who hoard a lot of the new banknotes.

Share on Facebook Tweet Email
PreviousAccess Bank’s African footprint expansion continues, merger talks in Zambia on with Cavmont Bank
NextSavings bonds offer restarts August 10 after three-month suspension

Leave a comment

- Cancel reply

MARKET DATA

Market Videos

Recent Posts

  • Access Bank unfolds ambitious expansion into Africa, global markets leveraging HoldCo structure
  • Nigeria bourse chief pleads caution on 2021 growth expectations
  • Selloffs in BuaCem, Access, UBA push Nigeria bourse under waters
  • Shippers Association predicts shortfall in cargo imports as covid-19 bites harder
  • LME contemplates permanent shutdown of historic trading ring

World

Africa

Buhari, Okonjo-Iweala congratulate Adesina over reelection as AfDB President

Europe

EU businesses to cut investments in 2020, says EIB report

America

U.S. increases cost of visa application for Nigerians

Africa

Thatcher-Loving Nigeria Candidate Plans to Overhaul Economy

Africa

AfDB scales up industrialization pace on the continent, delivers improved business access to finance, skills, energy

Frontpage posts

0

Crypto-assets do not pose risks to global financial stability for now, Mark Carney tells G20 finance leaders

Frontpage March 19, 2018

1
2

Analysts expect mixed performance as Nigeria bourse starts week bearish, index down 0.1%

Frontpage August 11, 2020

3

Nigeria’s crude oil export drops by 1.6m barrels in May

Frontpage July 1, 2019

4

Warren Buffett donates $3.4 billion to 5 foundations

Frontpage July 17, 2018

5

Nigerian stocks remain depressed on rate watch, not-so-good growth figures

Frontpage May 21, 2018

SUPPORT

  • Photo Gallery
  • Help Centre
  • About Us
  • Accessibility

LEGAL & PRIVACY

  • Terms & Conditions
  • Privacy
  • Cookies
  • Copyright

SERVICES

  • Conferences & Events
  • Analysts Research
  • Advertising Rate
  • Ebooks

TOOLS

  • Portfolio
  • Newsletters
  • News feed
  • Currency Converter

SUBSCRIBE

Join us to get latest updates on business related news.

[mc4wp_form id="3076"]
  • ABOUT US
  • CONTACT US
  • CAREERS
  • TERMS & CONDITIONS
  • PRIVACY POLICY
Copyright 2017. All rights reserved. BusinessAMLive. A Businessnewscorp Member Company.