CBN’s SLF lending to banks jumps to N268.3 billion

The amount of money that banks borrowed from the CBN’s SLF rose by 466 percent YoY to N268.3 billion at the end of October 2023, compared to N47.35 billion at the same time in 2022. This shows the increase in the amount of money that people hold outside banks.

The CBN has two ways of lending money to banks and merchant banks for a short time. They are called SLF and Repo.

According to the CBN data on money and credit, the amount of money that people hold outside banks was N2.35 trillion at the end of September 2023. This was 195 percent higher than the amount in January 2023, which was N792.18 billion. This happened because the CBN changed the design of the N200, N500, and N1000 notes.

The CBN data also showed that the amount of money that banks deposited in the CBN’s SDF went up by 465 percent YoY to N5.29 trillion at the end of October 2023, from N935 billion at the end of October 2022.

The CBN sold less foreign exchange to the NAFEM, SMEs, and invisibles in Q2’23 than in Q2’22. The amount of foreign exchange sales dropped by 121 percent YoY to $2.92 billion in Q2’23 from $3.7 billion in Q2’22. This was in the CBN quarterly statistical bulletin for June 2023.

The CBN sold $1.2 billion in foreign exchange in April. In May, the amount of foreign exchange sales went down by 15.8 percent to $736.98 million. In June, the amount of foreign exchange sales went up by 27 percent to $939.39 million.