Currency-in-Circulation Rises Marginally to N2.159trn

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At N2.159 trillion, currency-in-circulation, on month-on-month basis, rose by 0.3 per cent at the end of April 2019, the Central Bank of Nigeria (CBN) revealed in its economic report for May 2019.
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, according to the central bank, reflected the increase in demand deposit component.
The report showed that 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 N15.746 trillion at the end of April 2019, the report showed.
“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, it added.

Also, under the CBN’s Commercial Agriculture Credit Scheme, as at May 20, 2019, 21 projects repaid the sum of N2.63 billion in respect of one project as full repayment and 20 projects as steady repayments.
The repayment of N2.63 billion took the cumulative repayment under CACS from inception in 2009 to N347.69 billion.
Analysis of number of projects financed under CACS by value chain indicated that out of the 588 CACS-sponsored projects; production accounted for 61.1 per cent and dominated the activities funded, while processing accounted for 28.1 per cent.

“These were followed by storage, input supplies and marketing which accounted for 4.8 per cent, 3.4 per cent and 2.7 per cent, respectively.
“The Agricultural Credit Guarantee Scheme (ACGS) guaranteed a total of N259.1 million to 1,397 farmers in May 2019. The amount represented a decrease of 24.4 per cent and 2.7 per cent below the levels in the preceding month and the corresponding period of 2018, respectively.
“Sub-sectoral analysis showed that food crops got the largest share, amounting to N136.0 million (52.5%) guaranteed to 860 beneficiaries, followed by livestock, N44.9 million (17.3%) guaranteed to 171 beneficiaries.

“The sum of N41.8 million (16.1%) was guaranteed to cash crops sub-sector, in favour of 226 beneficiaries. Fisheries, ‘others’ and Mixed crops received N22.8 million (8.8%), N10.9 million (4.2%) and N2.8 million (1.1%), guaranteed to 77, 45 and 18 beneficiaries, respectively,” the report showed.

Analysis by State showed that 22 states and the Federal Capital Territory benefited from the scheme in May 2019, with the highest and lowest sums of N34.6 million (13.4%) and N0.1 million (0.04%) guaranteed to Ogun and Delta states, respectively.
The report indicated that the Bank continued to intervene in the foreign exchange market to further sustain the improved liquidity and relative stability in the market.

Thus, a cumulative sum of US$2.04 billion was sold by the Bank to authorised dealers in May 2019, compared with US$2.43 billion supplied in April 2019. This indicated a decline of 16.1 per cent and 42.4 per cent below the levels in the preceding month and the corresponding period of 2018, respectively.

Interbank sales fell by 10 per cent to US$0.09 billion, compared with the level in the preceding month. However, BDC sales rose by 6.3 per cent to $1.05 billion in the review month, while swaps transaction remained unchanged at the preceding month’s level of $0.01 billion

In the review month, the report showed that the average exchange rate of the naira to the US-dollar, at the inter-bank segment, was N306.95/$, representing an appreciation of 0.003 per cent and 0.4 per cent, compared with the levels in the preceding month and the corresponding period of 2018, repectively. The average rate at the BDC segment, at N360/$, depreciated by 0.3 per cent, relative to the level at the end of the preceding month, but appreciated by 0.7 per cent, relative to the level at the end of the corresponding period of 2018.

At the Investors and Exporters’ (I&E) window, the average exchange rate of the naira vis-à-vis the US dollar, at N360.74/$, appreciated by 0.01 per cent and 0.06 per cent above the levels in the preceding month and the corresponding period of 2018, respectively.