• Thursday, July 25, 2024
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BusinessDay

Currency in circulation rise by 29.30% as naira weakens at I&E window

Currency in Circulation (CIC) rose by 29.30 percent year-on-year to N2.90 trillion at the end of December 2020 from N2.25 trillion in January 2020, according to the data obtained from the Central Bank of Nigeria (CBN).

CIC is the value of cash that has been issued by a country’s monetary authority less the amount that has been removed.

In October, CIC rose by 2.3 per cent to N2.5 trillion at the end of October 2020, in contrast to the decline of 0.6 per cent in the preceding month. Consequently, there was a slight decline in the currency reserve ratio to 20.4 per cent at the end of October 2020 from 21.8 per cent at the end of the preceding month.

Naira depreciated by 0.25 percent as the dollar was quoted at N395.00k at the Investors and Exporters (I&E) forex window on Tuesday compared to N394.00k quoted on Monday.

The drop in the naira value was attributed to strong demand in spite of increased dollar supply. Foreign exchange dealers maintained bid at between N388.00k and N416.95k per dollar.

Daily foreign exchange turnover rose significantly by 157.37 percent to $71.25 million from $28.85 million recorded on Monday, data from FMDQ indicated.

The local currency steadied at N480 and N478 per dollar at the black market and Bureau De Change (BDC) segment of the FX market.