Banking sector credit to the private sector declined by N136 billion to N16.373 trillion at the end of
The latest money and credit statistics for
However, the total amount of Deposit Money Banks' (DMBs') reserves with the central bank increased to N3.816 trillion in the review month, from N3.782 trillion the previous month. Bank reserves are deposits in accounts with the central bank that are not to be lent out. It is held as part of risk management measures.
The significant amount of banks' reserves at the central bank is as a result of the imposition of a 75 per cent Cash Reserve Requirement (CRR) for public sector deposits at the last
Meanwhile, broad money (M2), which generally is made up of demand deposits at commercial banks and monies held in easily accessible accounts declined to N15.465 trillion in the month under review, from N15.669 trillion recorded in December.
Also, Narrow Money (M1), which includes all physical monies such as coins and currency along with demand deposits and other assets held by the central bank also fell to N6.754 trillion, from N7.013 trillion the previous month.
Furthermore, currency outside banks reduced to N1.333 trillion, from N1.447 trillion the previous month, while demand deposits which are funds held in an account from which deposited funds can be withdrawn at any time without any advance notice to the depository institution also reduced slightly to N5.420 trillion as at January, as against the N5.566 trillion it was the previous month.
But, quasi money, which is made up of highly liquid assets that can easily be converted to cash improved to N8.712 trillion as at January, compared to the N8.656 trillion it stood the previous month.
Similarly, while Net Foreign Assets dropped to N8.243 trillion as at January, from N8.513 trillion the previous month, Net Domestic Assets climbed to N7.222 trillion, from N7.155 trillion.
The CBN economic report for November last year had shown that growth in key monetary aggregate was moderate at the month. The development reflected, wholly, the 3.4 per cent increase in domestic credit (net) of the banking sector, which more than off-set the 2.4 and 0.6 per cent decline in foreign assets (net) and other Assets (net) of the banking system, respectively.
However, then, narrow money (M1) declined by 1.3 per cent, in contrast to the growth of 2.7 per cent at the end of the preceding month. The development then was attributed, wholly, to the 2.5 per cent fall in its demand deposit component.
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