Total deposits with CBN rise to N20.6trn

The Central Bank of Nigeria (CBN) has revealed that total deposits by the federal, state governments, financial institutions, among others increased by 4.7 per cent to N20.6 trillion in November from N19.67 trillion in October 2017.

The CBN, performing one  of its key mandate as government banker, also keep financial institutions’ deposits via its Cash Reserve Ratio (CRR), among other financial instruments to maintain capital flow in the sector.

The Monthly Statement of Assets and Liabilities published by the CBN on its official website disclosed that deposit from federal and state governments rose by 1.6 per cent to N904.6 billion in November from N889.9 billion in October 2017.

According to CBN unaudited financial results and operations, financial institutions deposit dropped by nearly two per cent from N3.64 trillion in October to N3.57 trillion in November. ‘Other deposits’ in the month under review thus increased by 6.5 per cent from N15.14 trillion in October to N16.1 trillion in November.

According to the data by CBN, Foreign Government Securities and current account balances with Foreign Banks as at November 2017 moved to N1.667 billion in November from N1.663 billion in October while fixed assets remained unchanged at N458.6 billion.

The total external reserve increased by 9.1 per cent from N11.6 trillion in October to N12.6 trillion in November at which Convertible Currencies contributed 105 per cent. The breakdown according to CBN revealed that convertible currencies hit N12 trillion in November from N10.96 trillion in October while Special Drawing Rights remained unchanged at N631.7 billion.

Also, assets on Gold and International Monetary Fund (IMF) Gold Tranche remain flat at N19 billion and N22.6 billion respectively. In all, Total Equity & Liabilities, according to CBN gained 5.8 per cent to N25 trillion from N23.8 trillion in October.

Meanwhile, Nigerians returning to their bases in Europe after the yuletide and students making school fees payments forced the naira to slip against pound sterling and euro yesterday at the parallel market segment of the foreign exchange market despite slow trading.

The pound sterling closed at N485 from N482 it opened for trading and the euro at N427 from N426 it closed for trading on Tuesday respectively. At the official foreign exchange market, the naira remained flat at N305.50 against the dollar, the same rate it sold on Tuesday when the foreign exchange market opened for 2018 trading activities.

However, better than N306 exchanged against the dollar on the last trading day in 2017, as well as N306.10 and N306.15 traded during the last trading week of 2017.

The naira, reciprocated similar feat over the dollar on Wednesday when it sustained appreciated rate of N363 per dollar against N364 sold a week ago at the unofficial segment of the foreign exchange market.

Also, the Investors and Exporters (I&E) foreign exchange window opened at an app rate of 359.85 against N360.05 recorded on Wednesday, but traded high at N362.00 and eventually closed at N361.00, the same price settled the previous day.

The Investors & Exporters foreign window, however, declared weaker daily transactions turnover of $124.24 million, compared to $200.36 million recorded on Tuesday.

Foreign exchange  traders, however, believed that the Nigeria’s local currency will be stable in the first trading week of 2018, in anticipation  that the apex bank would continue to support the naira through its regular interventions of injection of dollars into the market.

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