The Central Bank of Nigeria (CBN) will today begin the implementation of the 15 per cent Cash Reserve Ratio (CRR) on private sector deposits announced at the March 24 meeting of the Monetary Policy Committee (MPC).
CRR is a portion of banks’ deposits kept with the CBN as reserves.
It enables the CBN to control the money in circulation to strengthen the naira.
Last month, seven members of the MPC voted to increase CRR by 300 basis points to 15 per cent; two voted to retain the CRR at 12 per cent.
The committee decided by a majority vote of five to four to hold the MPR and its corridor at current levels, but raised the CRR on private sector deposits by 300 basis points to 15 per cent.