Deposits at CBN plunge by 2.9% in Q3 – Report

The CBN Economic Report for Q3 2014 indicated that “the development reflected, largely, the 9.6 per cent fall in federal government deposits, which more than offset the 3.4 and 4.4 per cent increase in the deposits of banks and ‘Others’, respectively.”
Data analysed showed that of the total deposits, the shares of the federal government, banks and “Others” were N3, 047.3 billion (45.6 per cent), N3, 334.4 billion (49.9 per cent) and N301.5 billion (4.5 per cent), respectively.
Meanwhile, the report revealed that at N1, 548.3 billion, currency-in-circulation rose by 3.4 per cent at the end of the quarter, compared with the increase of 3.4 per cent at the end of the corresponding quarter of 2013.
This contrasted with the 4.9 per cent decline at the end of the preceding quarter of 2014.
The CBN report attributed the development “largely” to the 6.9 per cent rise in currency outside banks.
Furthermore, the report indicated that Reserve Money (RM), at N4, 882.7 billion, rose by 3.4 per cent, in contrast to the 6.2 per cent decline recorded at the end of the preceding quarter.
The CBN attributed the development, “relative to the level at the end of the preceding quarter,” to the increase of 3.4 apiece in its currency and demand deposit components.