Foreign assets (net) of the banking system fell by 3.2 per cent to N8.243 trillion at the end of January 2014.
This is compared with the decrease of 1.9 per cent recorded at the end of the preceding month, but was in contrast to the growth of 2.5 per cent at the end of the corresponding period of 2013.
The economic report of the Central Bank of Nigeria (CBN) for the month of January posted in its website said that the development relative to preceding month, was due to the 6.2 per cent decrease in the CBN’s holdings of foreign assets.
Other assets (net) of the banking system, on a month-on-month basis, also fell marginally by 0.01 per cent to negative of N7.886 trillion, in contrasted to the 1.9 per cent growth recorded at the end of the preceding month.
The report, however, showed a decline of 3.1 per cent, on year-on-year basis. The apex bank report reflected, largely, the fall in unclassified assets of both the CBN and the DMBs.
The report further showed that at N15.107 trillion, aggregate banking system credit (net) to the domestic economy at end-January 2014 rose by 0.5 per cent to N15.107 trillion, on month-on-month basis, compared with the growth of 6.7 per cent at the end- December 2013 and decline of 1.6 per cent at the end of the corresponding period of 2013.
The development relative to the preceding month, reflected, wholly, the 13.9 per cent increase in claims on the federal government.
Banking system’s credit to the federal government, on month-on-month basis, rose by 13.9 per cent to negative N1.265 trillion, against the growth of 37.7 per cent at the end of the preceding month, and drop of 2.0 per cent recorded at the end of the corresponding month of 2013.
The CBN said that the growth in the preceding month, reflected largely, the increase in banking system’s holdings of government securities.
Banking system’s credit to the private sector declined by 0.8 per cent, on month-on-month, to N16,373.1 billion, in contrast to the 0.4 per cent increase at the end of the preceding month.