In August 2023, Nigeria’s narrow money supply (M1), comprising cash in circulation and easily convertible deposit accounts, decreased by 0.56 percent to N24.02 trillion from N24.16 trillion in July. Additionally, broad money supply (M3) saw a slight dip of 0.03 percent to N65.45 trillion compared to N65.47 trillion in the previous month. Economists suggest that this decline, though minor, may be a regular aspect of economic activities.
Key Points:
- Nigeria’s narrow money supply (M1) fell by 0.56 percent to N24.02 trillion in August 2023, down from N24.16 trillion in July.
- M1 includes cash in circulation and deposit accounts easily convertible into cash.
- Broad money supply (M3) showed a marginal decline of 0.03 percent to N65.45 trillion in the same period, compared to N65.47 trillion in the previous month.
- Yemi Kale, partner & chief economist at KPMG Nigeria, suggests that this decline is too insignificant to draw significant conclusions and could be a regular part of economic activities.
Analysis: The slight decline in money supply, while seemingly immaterial, can reflect nuanced shifts in economic activities. Monitoring these fluctuations is crucial for understanding the broader economic trends and making informed policy decisions.
Published by: Market News Nigeria