Following data from the Central Bank of Nigeria (CBN) official website, it has shown that the quantum of money circulating within the Nigerian economy reduced by N332.403 billion or 15.4 percent in between January and July this year.
According to the CBN, currency-in-circulation dropped from its peak of N2.157 trillion in the festive period of December 2017, to N1.824 trillion.
Year-on-year, the figure however showed an increase by N55.741 billion or 3.15 percent from N1.769 trillion at the end of July 2017; while month-on-month, currency in circulation dropped from N1.9 trillion, or N75.845 billion representing 3.99 percent slide.
Between March and July, it reduced from N2.039 trillion, or N214.498 billion or 10.51 percent.
Just like the nation’s inflation rate, currency-in-circulation has dropped consistently month-on-month, since the end of March, with the biggest decline being between June and July.
Meanwhile, the CBN sustained its intervention in the interbank foreign exchange market by injecting another $210 million into various sums of the market on Tuesday.
At the session, the CBN offered $100 million as wholesale interventions and allocated $55 million each for Small and Medium Enterprises (SMEs) forex window and the invisibles sector, for customers requiring forex for Business/Personal Travel Allowances, tuition and medical fees, among others.
Isaac Okorafor, acting director, corporate communications at the CBN, confirmed the figures, and expressed the management’s pleasure at the performance of the naira, noting that the currency had continued to enjoy stability against the dollar and other major currencies of the world in recent times.
He reassured the public that management would continue to intervene in the interbank foreign exchange market in line with its resolve to ensure liquidity in the forex market and maintain stability.
He reiterated that the steps taken by the CBN in forex management had resulted in further reduction in the country’s import bills and accretion to its foreign reserves.
It would be recalled that the CBN last Friday, August 10, intervened in the Retail Secondary Market Intervention Sales (SMIS) to the tune of $327 million in the agricultural and raw materials and CNY69 million in the spot and short-tenured forwards.
The naira continued to maintain its strong stand against major currencies around the globe, exchanging for N360/$1 in the BDC segment of the market on Tuesday.
