Macroeconomic Report & Economic Updates
October 11, 2017
Nigeria Economic Update (Issue 39)
The monthly monetary survey by the CBN shows a decline in money supply for the month of August 2017, relative to July 2017. Narrow and broad money supply dropped by 4.2% and 1.5% to N9,891 billion and N21,851 billion respectively. The continuous monetary contraction witnessed over the past months may be associated with aggressive sale of treasury bills by the CBN through open market operations. This act is capable of mopping up liquidity in the economy, reduce loanable funds in the banking system, and constrain the easing of lending rates in the near term.
Related
Nigeria Economic Update (Issue 9)
The naira depreciated by 8.2 percent from
N305/$ on February 5th, to N330/ $ on February 12th 20166. The apex body identified the
increased domestic demand for forex to pay for foreign medical treatments and
schools fees (15 percent of total demand) 7 as the main drivers. As
a result, the apex bank is considering to discontinue the provision of forex for
payment of medical bills and school fees abroad and to re-channel the forex
towards the manufacturing sector of the economy. With the continuous
depreciation of the naira, and the CBNs resistance from calls to devalue the
currency, the options for alternatives measures seem to be diminishing.