CBN sold out $2.5bn in November and got $2.48bn from outside

—- N20.4708 trillion, aggregate credit to the domestic
—- N18.7068trillion, banking system’s credit to the private sector
—- N1.63321 trillion, currency-in-circulation

By Omoh Gabriel
The Central Bank yesterday in its Economic Report of the Nigerian Economy for the month of November 2015 said that $2.48 billion foreign exchange came into the country through it while $2.50 billion went out. This it said resulted in a net out flow of $2million According to the report “Foreign exchange sales by the CBN to the authorised dealers amounted to $2.20billion and represented a 0.5per cent decrease below the level in October 2015. The average exchange rate at the inter-bank segment remained same at N196.99 per US dollar as in the preceding month, but showed a depreciation of 15.13 per cent relative to the level in the corresponding period of 2014.
The report said that “At the BDC segment, the average exchange rate, at N233.94 per US dollar, depreciated by 4.1 and 33.0 per cent, relative to the levels in the preceding month and the corresponding period of 2014, respectively. Gross external reserves increased by 3.2 per cent above the preceding month’s level”.
According to the CBN “At N20.4708 trillion, aggregate credit to the domestic economy, on month-on-month basis, fell by 4.1per cent at end-November 2015, compared with the decline of 0.8 per cent at the end of the preceding month. The development reflected the 22.0 and 2.0 per cent fall in claims on the Federal Government and private sector, respectively. Over the level at end-December 2014, net domestic credit grew by 6.2 per cent at the end of the review period, compared with the growth of 10.8 per cent at the end of October 2015. The development reflected the increase in claims on the Federal Government and private sector”.
It said that “Banking system’s credit (net) to the Federal Government, on month-on-month basis, fell by 22.0 per cent to N1.7640 trillion at end-November 2015, compared with the decline of 18.9 per cent at the end of the preceding month. The development was attributed to the 33.9 per cent decline in banking system’s holding of Government securities. Over the level at end-December 2014, aggregate banking system credit (net) to the Federal Government grew by 53.4 per cent, compared with the growth of 96.7per cent at the end of the preceding month”.
It also said that “At N18.7068trillion, banking system’s credit to the private sector, on month-on-month basis, fell by 2.0 per cent, in contrast to 1.9 per cent growth at end-October 2015. The development relative to the preceding month reflected the 8.0 per cent fall in central bank’s claims on the private sector. Over the level at end-December 2014, banking system’s credit to the private sector grew by 3.2 per cent. At N5.2872 trillion, foreign assets (net) of the banking system, on month-on-month basis, rose by 14.4 per cent at end-November 2015, in contrast with the decline of 9.1 per cent, at the end of the preceding month. The development was attributed to the 11.1 per cent growth in foreign asset holdings of the CBN.
Over the level at end-December 2014, foreign assets (net) fell by 24.0 per cent, compared with the decline of 33.5 per cent at the end of the preceding month. The development was attributed to the respective decline of 16.1 and 93.4 per cent in the foreign asset holdings of CBN and DMBs”.
According to the CBN “At N1.63321 trillion, currency-in-circulation rose by 4.7 per cent in the review month, in contrast to the 4.7 per cent decrease at the end of
October 2015. The development was due, largely, to the rise in its currency outside banks component. Total deposits at the CBN amounted to N9.24037trillion, indicating an increase of 18.6 per cent above the level at the end of the preceding month. The development reflected the increase in its components. Of the total deposits at CBN, the share of the Federal Government, banks and the private sector was 51.0, 43.4 and 5.6 per cent, respectively. Reserve money (RM) rose by 1.7 per cent to N5.639.63 trillion at the end of the review month, reflecting the increase in currency-in- circulation and banks’ reserves with the CBN”
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