FX RATES
FX RATES

Despite Inflation Fall, N2.84 Trillion Currently In Circulation In The Nigerian Economy

The amount of naira in circulation for september 2021 is valued at N2.84 trillion naira in the Nigerian economy, This data was released by the central bank of nigeria which indicated there was an estimated N58 billion injection of naira. Historically naira from the middle of the year 2021 the money supply rose to N2.81 trillion and in august money supply figure was 5.83%

Currency in circulation is the amount of money that has been issued by monetary authorities minus currency that has been removed from an economy. Currency in circulation is an important component of a country’s money supply. Money supply on the other hand, The U.S. money supply is all the physical cash in circulation throughout the nation, as well as the money held in checking accounts and savings accounts.

The CBN explained that the spiral in net foreign asset and domestic asset are a result of rise in commercial and merchant bank foreign asset and aggregate net credit respectively.

 

Data from the central bank of Nigeria in respect to the money market suggests that open buyback rate which is a money market instrument used to raise short term capital. It is a form of borrowing using Nigerian Government Securities as collateral increased to 12.97% in august from 11.60% in previous month.

According to the CBN “ tight liquidity conditions in the banking system during the review period as the bank curtailed excess system liquidity was responsible for the increase experienced

The central bank of Nigeria stated that they are focused on tracking the value of currency in circulation through accounting statistical and withdrawal methods to achieve accurate results.

 

They have also taken steps to monitor withdrawals made by DMB at CBN branches where CIC accounts are recorded accordingly to create a balance within the account books that will represent nigeria’s currency in circulation.

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