By PETER EGWUATU

The Central Bank of Nigeria, CBN, has disclosed that the foreign exchange inflow and outflow through it in August 2013 were US$ 3.40 billion and US$ 3.47 billion, respectively, and resulted in a net outflow of US$ 0.07billion.

The CBN disclosed this in its economic report for August 2013 stating that foreign exchange sales by the CBN to the authorized dealers amounted to US$ 2.93 billion, showing a decline of 26.4 per cent below the level in the preceding month.

The report revealed further that non oil in export receipts decreased by 77.0 per cent below the level in the preceding month. The apex bank attributed the decline in non oil export receipts largely, to the fall in receipts from the industrial, manufactured, agricultural products and food products sectors.

According to the report, world crude oil output in August 2013 was estimated at an average of 90.04 million barrels per day (mbd), while demand was estimated at 90.18 million barrels per day (mbd), compared with 89.95 and 89.64 (mbd) supplied and demanded, respectively, in the preceding month. The rise in demand was attributed to increased transportation and industrial fuel usage by the non – Organisation for Economic Co-operation and Development (OECD) countries.

On Deposit Money Banks (MMBs) activities, the CBN stated that the total assets and liabilities of the deposit money banks amounted to N23,141.19 billion, showing an increase of 1.8 per cent above the level at the end of the preceding month.

According to the report, Funds were sourced mainly from Federal Government Deposits and reduction in claims on Central Government. The funds were used, largely, in the building up of reserves and in the extension of credit to the private sector. At N11, 556.7

billion, DMBs  credit to the domestic economy fell by 3.9 per cent below the level in the preceding month. “The development was attributed largely to the 89.3 per cent decline in banks holding of treasury bills and FGN Bonds during the review month.  Total specified liquid assets of the banks stood at N 6 .662 .08 billion, representing 4 2.0 per cent of their total current liabilities.

At that level, the liquidity ratio fell by 8.5 percentage points below the level in the preceding month, but was 22 .0 percentage points above the stipulated minimum ratio of 30.0 per cent. The loans  to – deposit ratio, at 32.7 per cent, was 1.4 and 38.0 percentage point below the levels at the end of the preceding month and the prescribed maximum ratio of 80.0 per cent, respectively” CBN stated.