L
LequteMan
Guest
The depletion of fiscal buffers and the declining oil revenue, coupled with the falling foreign direct investment inflows, informed Central Bank of Nigeria (CBN)’s decision to increase the public sector Cash Reserve Requirement (CRR) from 50 per cent to 75 per cent while retaining the Monetary Policy Rate (MPR) at 12 per cent +/-200 basis points.
The increase in CRR in public sector deposits the Monetary Policy Committee (MPC) said is to address excess liquidity in the banking system occasioned by recent monetisation of foreign exchange earnings and finance statutory allocation to various tiers of government.
Other decisions taken after the 93rd Monetary Policy Committee’s (MPC) meeting in Abuja, include the retention of private sector CRR at 12 per cent and the retention of Liquidity Ratio (LR) at 30 per cent. Speaking after the MPC meeting in Abuja, CBN Governor, Mallam Sanusi Lamido Sanusi, observed that the gross external reserves as at December 31, 2013 stood at $42.85 billion, representing a decrease of $0.98 billion or 2.23 per cent compared with $43.83 billion at the end of December 2012.
More details here
Source: The Sun Newspaper
The increase in CRR in public sector deposits the Monetary Policy Committee (MPC) said is to address excess liquidity in the banking system occasioned by recent monetisation of foreign exchange earnings and finance statutory allocation to various tiers of government.
Other decisions taken after the 93rd Monetary Policy Committee’s (MPC) meeting in Abuja, include the retention of private sector CRR at 12 per cent and the retention of Liquidity Ratio (LR) at 30 per cent. Speaking after the MPC meeting in Abuja, CBN Governor, Mallam Sanusi Lamido Sanusi, observed that the gross external reserves as at December 31, 2013 stood at $42.85 billion, representing a decrease of $0.98 billion or 2.23 per cent compared with $43.83 billion at the end of December 2012.
More details here
Source: The Sun Newspaper
