business
Real Reason for the depreciation of the Nigerian Naira
Acoording to Nairametrics An increase in money supply is likely one of the factors fueling the recent currency depreciation between the naira and the dollar.
This is based on an examination of the central bank’s money supply data over the last decade, particularly since the apex bank began its policy of intervention in the public and private sectors.
The amount of money supply in the economy is at its highest level on record, estimated at N48.8 trillion, with currency in circulation exceeding N3 trillion for the eighth consecutive month. Demand deposits, or funds held by banks on behalf of customers, have also reached an all-time high of N17 trillion.
The amount of money in circulation has grown over time, owing largely to the CBN’s low-interest policy (implemented to stimulate economic growth), trillions of naira in CBN intervention funds, and CBN bailouts of federal and state governments through its Ways and Means powers. As a result, there is an excess of naira chasing dollars.
READ THE ORIGINAL ARTICLE ON NAIRAMETRICS
- MORE STORIES: Nigeria to reduce out of school children by 70%
- Nigeria: Gunmen kidnap Catholic Priest in Sokoto
-
Headlines9 months ago
Can Peter Obi Change Nigeria with his agenda and can he fulfill his promises?
-
business9 months ago
How to Start a Roadside Restaurant Business in Nigeria
-
Headlines7 months ago
Thousands of migrants protest after dozens died in a attempt to cross into Spanish enclave of Mellila
-
Featured post9 months ago
Is there unity in the African Union?
-
business7 months ago
China Gift Zimbabwe $160 million new parliament building
-
Politics7 months ago
Nigeria Army denies planned protest over unpaid salaries
-
business9 months ago
How to detect a Nigerian Ponzi scheme
-
Entertainment7 months ago
How APC paid Portable to campaign for Tinubu