Wednesday, 3 September 2014

Credit to Private Sector Rises to N17.252tn

Credit by banks to the private sector increased year-on-year by N288 billion to N17.252 trillion as at the end of July 2014, compared to the N16.964 trillion it stood at the end of June 2014.
The current value showed that banking system credit to the private sector has risen by a total of N483 billion in the last two months, compared to the N16.769 trillion it was as at the end of May 2014.
The Central Bank of Nigeria (CBN) revealed this in its latest money and credit statistics for July, stating that this may rise further following the implementation of the N220billion micro, small and medium enterprises (MSME) fund.
In his maiden address to the nation in June, the CBN Governor, Mr. Godwin Emefiele promised, among others things, to lead a central bank that would deploy developmental initiatives to create an enabling environment with appropriate incentives to empower innovative entrepreneurs to drive growth and development.

Emefiele had also explained that the CBN would not be targeting individual companies but rather specific sectors. He listed the CBN’s developmental functions to include credit allocations and direct interventions in key sectors of the economy, such as power, agriculture, MSME, oil and gas, and health.
The latest central bank data also revealed that currency outside banks increased to N1.237 trillion in July, up from N1.162 trillion recorded the previous month.
Similarly, the total amount of currency-in-circulation climbed to N1.568 trillion at the end of July, as against the N1.497 trillion it was the previous month.
However, the data showed that the total amount of banks’ reserves with the central bank declined to N3.199 trillion in the month under review, from N3.226 trillion in June.

But demand deposits, which are funds held in an account from which deposited funds can be withdrawn at any time without any advance notice to the depository institution increased from N5.425 trillion in June, to N5.508 trillion in the month under review.
The data also revealed that broad money (M2), which generally is made up of demand deposits at commercial banks and monies held in easily accessible accounts rose significantly year-on-year from N15.928 trillion as at June, to N16.425 trillion in July. Similarly, narrow money (M1), which includes all physical monies such as coins and currency along with demand deposits and other assets held by the central bank increased year-on-year to N6.745 trillion as at July, up from the N6.587 trillion recorded in June.

However, quasi money, which is made up of highly liquid assets that can easily be converted to cash increased from N9.341 trillion in June, to N9.680 in July, just as Net Foreign Assets climbed from its previous month’s value of N7.693 trillion to N8.031 trillion. Net Domestic Assets also climbed marginally to N8.394 trillion in July, from N8.235 trillion the previous month.
Source: ThisDayLive

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