By Babajide Komolafe
In what appears to be a dent on the cashless policy, the amount of currency in circulation rose by 0.4 per cent to N1.36 trillion in the month of August.
Meanwhile, banks' lending to the domestic economy struggled to rise by 0.5 per cent during the month.
The Central Bank of Nigeria (CBN) disclosed this in its economic report for the month. The report said; "At N1, 368.2 billion, currency in circulation rose marginally by 0.4 per cent in the review month, in contrast to the decline of 0.1 per cent at the end of the preceding month.
The development reflected wholly, the 0.4 per cent increase in currency outside banks. Relative to the level at end-December 2011, currency in circulation fell by 12.6 per cent.(http://vml1.s3.amazonaws.com/wp-content/uploads/2012/04/NAIRaa.jpg?9d7bd4) (http://www.vanguardngr.com/2012/04/malis-chosen-interim-leader-prepares-for-transition/nairaa/)
"Total deposits at the CBN amounted to N6, 834.4 billion, indicating a decline of 1.5 per cent below the level at the end of the preceding month. The development reflected largely, the fall in Federal Government deposits. Of the total deposits, the percentage shares of the Federal Government, banks and "others" were 67.2, 24.6 and 8.2 per cent, respectively, compared with 70.1, 22.1 and 7.8 per cent in the preceding month.
"At N13,163.4 billion, aggregate banking system credit (net) to the domestic economy grew marginally by 0.5 per cent, on a month-on-month basis, in contrast to the 1.6 per cent decline at the end of the preceding month. The development reflected, largely, the 1.4 per cent fall in (net) claims on the Federal Government.
"Over the level at end-December 2011, aggregate banking system credit (net) to the domestic economy, fell by 3.8 per cent. Banking system's credit (net) to the Federal Government, on a month-on-month basis, fell by 1.4 per cent to negative N1,721.5 billion, in contrast to the increase of 26.5 per cent at the end of the preceding month. The development was attributed, largely, to the 19.2 per cent decline in DMBs' holding of treasury bills.
Vanguard Nigeria