• Thursday, February 22, 2024
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CBN tightens cash reserve requirement on public sector deposits

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The Central Bank of Nigeria (CBN) left its benchmark interest rate at 12 percent for the fourteenth time in a row on Tuesday but tightened the cash reserve requirement on public sector deposits to 75 percent, from 50 percent.

CBN Governor Lamido Sanusi noted that inflation was stable but said the monetary policy committee was concerned about a decrease in Nigeria’s crude oil savings and inflows from portfolio investors.

The monetary committee kept the lending corridor around its benchmark rate at 200 basis points and kept the cash reserve requirement on private sector deposits at 12 percent.