……Debits banks N917.5 billion on CRR
The Central Bank has again debited Nigerian banks N917.5 billion last week in its latest CRR action.
As a result of this action the Nigerian banks suffered a total of N917.5 billion in new CRR debits from the Central Bank of Nigeria. Reliable sources inform Energy Frontier that the latest debits occurred in the week ended October 23rd, 2020.
The cash reserve requirement is the minimum amount banks are expected to leave retained with the Central Bank of Nigeria from customer deposits.
In January, the CRR was increased by 5% to 27.5% by the CBN Monetary Policy Committee, MPC, who explained that the decision was intended to address monetary-induced inflation whilst retaining the benefits from the CBN’s LDR policy.