CBN’s Lending to Banks Rises by 466 % to N268bn
Banks’ borrowings from the Standing Lending Facility (SLF) of the Central Financial institution of Nigeria (CBN) elevated year-on-year (YoY) by 466 p.c to N268.3 billion as at finish of October 2023 from N47.35 billion as at October 2022 reflecting the rise in forex exterior banks.
The apex financial institution has two short-term lending home windows for banks and service provider banks specifically, SLF and Repurchase (Repo) lending.
CBN Cash and Credit score Statistics knowledge confirmed that forex exterior banks stood at N2.35 trillion as at September 2023 having risen by 195 p.c since January 2023 when it declined to N792.18 billion because of the redesign of the N200, N500 and N1000 notes.
Nonetheless, additional particulars of the statistics from the CBN Monetary knowledge additionally confirmed that banks’ deposits within the CBN Standing Deposit Facility (SDF) elevated YoY by 465 p.c to N5.29 trillion as at October ending of 2023 from N935 billion as at October 2022.
In the meantime, the CBN’s overseas trade gross sales to Nigerian Overseas Alternate Market (NAFEM), Small and Medium Enterprise (SMEs) and Invisibles declined YoY by 121 p.c to $2.92 billion within the second quarter of 2023 (Q2’23) from $3.7 billion in Q2’22.
This was contained within the CBN quarterly statistical bulletin for June 2023.
Breakdown of overseas trade gross sales within the months comprising Q2’23 confirmed that the apex financial institution offered $1.2 billion in April.
In Could, overseas trade gross sales fell by 15.8 p.c to $736.98 million and elevated by 27 p.c to $939.39 million in June.