CBN has introduced 75% cash Reserve Ratio on Non-TSA Funds.
NewsOnline Nigeria reports that the Central Bank of Nigeria (CBN) has introduced a 75 percent Cash Reserve Ratio (CRR) on non-Treasury Single Account (TSA) deposits, alongside a 50 basis point cut in the benchmark interest rate the first since 2023.
CBN Governor Olayemi Cardoso announced the measures on Tuesday after the conclusion of the apex bank’s 302nd Monetary Policy Committee (MPC) meeting in Abuja.
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The MPC reduced the Monetary Policy Rate (MPR) to 27 percent, down from 27.5 percent, while adjusting the CRR to 45 percent for Deposit Money Banks and 16 percent for Merchant Banks. The asymmetric corridor was also maintained at +250/-250 basis points, with the liquidity ratio retained at 30 percent.
The move comes as Nigeria’s inflation rate moderated for the fifth consecutive month to 21.12 percent in August, reflecting efforts by the CBN to ease monetary conditions while stabilizing prices.
