By Elizabeth Adegbesan
Banks’ borrowings from the Central Bank of Nigeria (CBN) Standing Lending Facility rose quarter-on-quarter, QoQ, by 75 % to N1.eight trillion within the first quarter of the yr (Q1’20) from N1.three trillion within the previous quarter, This autumn’19.
Nevertheless, banks’ patronage of the apex bank’s Standing Deposit Facility (SDF), through deposit placement, fell by 56 % to N843.09 billion in Q1’20 from N1.9 trillion in This autumn’19.
In the meantime, the currency-in-circulation (CIC) rose barely by 5 % to N2.three trillion throughout the interval from N2.2 trillion in This autumn’19.
Within the Q1’20 Financial Report, the CBN acknowledged: “The Deposit Cash Banks (DMBs) and service provider banks continued to entry the standing amenities window to square-up their positions. The pattern on the CBN standing amenities window confirmed extra frequency on the SLF window, as towards the decreased patronage on the SDF window. Relevant charges for the SLF and SDF remained at 15.50 and eight.50 per cent, respectively.
“Whole request for the SLF throughout the assessment quarter was N1.81 trillion. This was made up of N1.21trillion direct SLF and N597.96 billion Intraday Lending Facility (ILF) transformed to in a single day repurchase. Day by day request ranged from N0.72 billion to N181.63 billion and averaged N40.26 billion within the 45 transaction days within the interval. Whole curiosity earned at 15.50 per cent was N767.13 billion.
“The total SDF granted during the review period was N843.09 billion with a daily average of N14.05 billion in the 60 transaction days in the first quarter of 2020. Daily request ranged from N1.57 billion to N47.90 billion. Cost incurred on SDF in first quarter of 2020 stood at N0.46 billion.”
On CIC, the report acknowledged: “Currency-in-circulation (CIC), on quarter-on-quarter basis, fell by 6.0 per cent to N2.29 trillion at end-March 2020, compared with a decline of 7.5 per cent at the end of the first quarter of 2019, but was in contrast to the growth of 21.8 per cent recorded at the end of the fourth quarter of 2019. The development, relative to the level in the preceding quarter, reflected, mainly, the decline in currency outside depository corporations and the fall in vault cash, owing to the increase in Cash Reserve Ratio (CRR) by the Bank.”