The Central Bank of Nigeria, CBN, has commenced moves, targeted at mopping about N6.96 trillion from the banks as it increases Cash Reserve Ratio, CRR – a percentage of cash deposit with CBN – from 22.5 per cent to 32.5 per cent.
The Monetary Policy Committee of the CBN, yesterday, announced that banks would be required to increase their CRR to 32.5 per cent from Wednesday, September 28, 2022.
The Governor of CBN, Mr Godwin Emefiele, who made this dislosure, stated: “What we have done at this meeting is to say we will move CRR up by five per cent to a minimum of 32.5 per cent; that we will move MPR up by 150 basis points. That means over the last four months, we moved MPR up by over 400 basis points.
“Any bank that fails to fund their CRR to 32. 5 percent by Thursday may be stopped from participating in the FX market,” he said, adding, “we must mop up liquidity out of the vaults of the banks.”
He said: ‘‘10 members voted to increase CRR (Cash Reserve Ratio) by 500 basis points, while two members voted to increase it by 750 basis points.”
