Finance

Naira in circulation drops by 5.6% to N1.77trn – Central bank

The Central Bank of Nigeria (CBN) has disclosed that Naira currency in circulation dropped by 5.6 per cent to N1.77 trillion in July 2017.

The naira in circulation continued to drop in 2017 following the apex bank intensive effort to mop liquidity in the economy to reduce inflation and sustain its stability.

Naira in circulation according to CBN in June was N1.87 trillion from N1.897 trillion reported in May this year while it was at N1.98 trillion in April.

CBN early in the year disclosed that currency in circulation was N1.99 trillion, the highest so far this year and Inflation rate by National Bureau of Statistics (NBS) has since dropped to 16.1 per cent as at June from 18.72 per cent in January.

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Before now, the CBN said N2.2 trillion currency was in circulation for the month ended December 2016, increase of about 14.3 per cent from N1.9 trillion reported by CBN in November.

Naira in circulation started increasing from July to N1.66 trillion as against N1.68 trillion recorded in August the prior year.

As at the time of writing this report, the naira opened trading for week flat at both the inter-bank rate and parallel market rates. At the Interbank rates, it remained flat at N305.55/ dollar and N401.7/pound sterling. At the parallel market, the Naira remained flat at N365/dollar. It also remained flat at N475 and N425 against the pound and the euro to end Monday foreign exchange trading respectively.

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For the Investors and Foreign Exchange Window (IFEX), it depreciated by 0.20 per cent to close at N366.44/dollar from N367.04/dollar it opened for trading on Monday.

However, Analysts at Cordros Capital, has said, “We expect the Naira currency to remain unchanged or slightly depreciate against the currencies we track this week, given the increased demand for foreign exchange this season, albeit, the intervention by the CBN should reduce imbalances.”

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