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CASH RESERVE RATIO
Nigeria’s current account surplus surged to $5.28 billion in the second quarter of 2025, up from $2.85 billion in Q1, reflecting stronger external sector resilience and improved foreign exchange inflows.
The Central Bank of Nigeria (CBN) has voted to retain the Monetary Policy Rate (MPR) at 27.5%, following its latest Monetary Policy Committee (MPC) meeting.
The Nigerian currency showed strength in the official currency market but remained lukewarm in the black market following the CBN’s interest rate hike.
At least three members of the Monetary Policy Committee (MPC) voted to retain the Monetary Policy Rate (MPR) at 26.25% during the MPC meeting of the Central Bank of Nigeria (CBN) on July 22-23, 2024.
Olayemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), has emphasized the necessity of maintaining higher interest rates to address the persistent inflation issues plaguing the Nigerian economy.
The Nigerian naira held its value against the US dollar in the black market, but it slightly declined in the official market amid a mixed bag of U.S. economic data.
Information gathered by Nairametrics reveals about 17 banks had their vaults debited by the apex bank in CRR sequesters.
These debits have inevitably tightened liquidity in the banking system and bankers are complaining.
In the meantime, liquidity in the Nigerian banking system is said to be below N100 billion
Sadly, this move, in addition to similar policies by the CBN, has left many banks cash-strapped and unable to pursue various profitable ventures.
The liquidity based indicators of the nation remain a concern, as they make Nigeria’s low debt-to-GDP ratio highly vulnerable to shocks.
Many bankers and analysts were taken by surprise when, on the 24th of April, the CBN debited 29 commercial banks in Nigeria to the tune of N1.4 trillion.