CBN cuts merchant banks’ CRR to 10%

The Central Financial institution of Nigeria (CBN) on Friday revised the Money Reserve Ratio (CRR) of service provider banks to 10 p.c from 32.5 p.c.

Haruna Mustafa, director, banking supervision disclosed this in a letter to all Service provider banks dated July 14, 2023.

Learn additionally: Powerful instances for Nigerian banks as CRR hits document excessive

The CRR is the share of a financial institution’s whole buyer deposit that have to be deposited with the central financial institution.

The brand new recent reduce reverses considerably the rise within the CRR by the Financial Coverage Committee (MPC) final September from 27.5 p.c to 32.5 p.c to tame inflationary stress.