Banks’ reserves dropped to N4.306 trillion in November 2018, from N5.028 trillion at the end of October 2018, the Central Bank of Nigeria said.
The apex bank, in its latest money and credit statistics for November 2018, said Quasi Money, which are highly liquid assets other than cash, that can be quickly converted, also stood at N14.775 trillion as at the review month, from N14.800 trillion.
According to the CBN, narrow money supply, which includes all physical monies such as coins, currency, demand deposits and other assets, held by the CBN, dropped to N10.689 trillion at the end of the month under review, as against the N11.241 trillion recorded the previous month, while banking sector credit to the private sector dropped slightly, by N55.7 billion, to N23.083 trillion as of November 2018, from N23.138 trillion at the end of October, 2018.
Also, net credit to government fell to N2.980 trillion as at the end of November, lower than N3.756 trillion at the end of October 2018. But currency-in-circulation increased in the review period to N2.100 trillion, compared with N1.956 trillion recorded the previous month.
However, CBN data showed that currency outside banks increased to N1.712 trillion as of the review month; up from N1.602 trillion the previous month, while demand deposits (funds held in an account from which deposited funds can be withdrawn at any time without any advance notice to the depository institution) fell marginally, from N9.640 trillion the previous month, to N8.978 trillion in the review month.
The credit statistics also revealed that CBN bills, held by money holding sectors, improved to N6.333 trillion, from N5.984 trillion the previous month.
As part of efforts to encourage lending to the private sector, the CBN had introduced the real sector support facility. The facility was expected to boost investment and provide low cost funding for businesses.
The activities covered under the scheme are Greenfield (new) and expansion (Brownfield) projects in manufacturing, agriculture and other related sectors approved by the CBN.
In his outlook for 2019, CBN Governor, Mr. Godwin Emefiele, had predicted that monetary policy stance would remain judicious, research driven, adequate and supportive of the real economy, subject to underlying fundamentals.
He pointed out that the current tight monetary policy stance was expected to continue in the near-term, especially in view of rising inflation expectations and exchange market pressures.
“Though we will act to appropriately adjust the policy rate in line with unfolding conditions and outlooks, the CBN will continue to ensure that the policy interest rate is delicately set to balance the objectives of price stability with output stabilisation,” he said.
