Central Bank of Nigeria recently revealed that banks’ net foreign assets rose slightly to N14.19tn as of the end of November, 2019.
The bank stated in its economic report for the fourth quarter of 2019 that the “foreign assets (net) of the banking system grew by 2.0 per cent to N14.19tn at end-November 2019, in contrast to the 24.7 per cent and 2.2 per cent decline at the end of third quarter 2019 and fourth quarter of 2018 respectively.”
The rise, relative to the level in the preceding quarter, it added, was as a result of the increase in foreign asset holdings of the banking system.
It stated that with the level at the end of December 2018, the net foreign assets of the banking system fell by 22.8 per cent at end November 2019, compared with the decline of 24.4 per cent at end of third quarter 2019.
The CBN said this, however, contrasted with the increase of 18.5 per cent in the fourth quarter of 2018.
It stated, “At end-November 2019, other assets (net) of the banking system rose by 10.6 per cent to negative N13.22tn, compared with 6.9 per cent and 12.2 per cent increase at the end of third quarter 2019 and fourth quarter of 2018 respectively.
The development was due to the decrease in unclassified assets of the CBN and commercial banks, it stated.
Over the level at end-December 2018, the report said other assets (net) of the banking system fell by 4.9 per cent at end-November 2019, compared with the 17.4 per cent decline at the end of third quarter 2019.