CBN reports 0.56% decrease in money supply in August 2023

In a slight twist of fate, the money supply in Nigeria experienced a subtle decline in August 2023. M1, also known as narrow money, slipped by 0.56 percent to N24.02 trillion, while M3, a broader measure of money supply, dipped by a mere 0.03 percent to N65.45 trillion.

These figures, although seemingly insignificant, caught the attention of economists and analysts.Yemi Kale, the esteemed partner and chief economist at KPMG Nigeria, shed some light on the matter. He dismissed the decline as a trivial blip in the grand scheme of economic activities.

Perhaps this dip in money supply is nothing more than a fleeting anomaly, lost amidst the ebbs and flows of the financial world.

As the currency in circulation and the easily convertible funds in deposit accounts experienced a slight contraction, the financial landscape held its breath.

The Central Bank of Nigeria, the guardian of the nation’s monetary stability, diligently recorded these minute changes.

While the decline may not hold any profound meaning, it serves as a reminder of the intricate dance between money and the economy, where even the tiniest fluctuations can spark curiosity and contemplation.

“The decline is really too immaterial to make any sense of it and might just be a normal part of economic activities,” Yemi Kale, partner & chief economist, KPMG Nigeria, said.