Nigeria’s Money Supply Surges 65% to N107.1 Trillion in August 2024

CBN Responds with Monetary Policy Adjustments and Liquidity Injection

Nigeria’s money supply (M2) rose by 65% year-on-year to N107.1 trillion in August 2024, according to newly released data from the Central Bank of Nigeria (CBN). This marks an increase from N64.8 trillion recorded in the same period last year.

The CBN data also showed a 0.75% month-on-month increase from N106.3 trillion in July 2024. In response to the surge in M2, the CBN’s Monetary Policy Committee voted to raise the Monetary Policy Rate (MPR) by 50 basis points to 27.25%. Additionally, the Cash Reserve Ratio (CRR) for Deposit Money Banks was hiked to 50%, while Merchant Banks saw an increase to 16%.

Despite the rising money supply, CBN Governor Olayemi Cardoso announced plans to inject N1.4 trillion into the financial sector to further enhance liquidity.

 

 

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