Foreign assets (net) of the banking system fell by 15.0 per cent to N15,702.07 billion at end-August 2019, in contrast to the growth of 9.8 per cent recorded at end-June 2019.

The CBN reported the fall in NFA, relative to the level in the preceding quarter, was as a result of the decline in foreign asset holdings of the banking system.

Over the level at end-December 2018, net foreign assets of the banking system fell by 14.7 per cent at end-August 2019, in contrast to the growth of 0.4 per cent at end-June 2019.

At end-August 2019, other assets (net) of the banking system rose by 7.3 per cent to negative N14,747.99 billion, compared with the growth of 8.1 per cent at end-June. The development was on the account of the increase in the unclassified assets of the CBN.

Over the level at end-December 2018, other assets (net) of the banking system fell by 16.9 per cent at end-August 2019, compared with the decline of 26.1 per cent at end-June 2019.

Commercial Paper dips
Commercial Paper (CP) outstanding held by banks stood at N40.18 billion at the end of the third quarter of 2019, showing a decrease of 2.5 per cent below the N41.20 billion recorded at the end of the preceding quarter.

The development was due, largely, to the decrease in investments in CP by merchant banks during the review quarter.

Thus, CP constituted 0.32 per cent of the total value of money market assets outstanding during the review period, compared with 0.28 per cent in the second quarter of 2019.

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