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CBN cuts merchant banks’ CRR to 10%

MPC expected to hold but no members, meeting calendar

The Central Bank of Nigeria (CBN) on Friday revised the Cash Reserve Ratio (CRR) of merchant banks to 10 percent from 32.5 percent.

Haruna Mustafa, director, banking supervision disclosed this in a letter to all Merchant banks dated July 14, 2023.

Read also: Tough times for Nigerian banks as CRR hits record high

The CRR is the share of a bank’s total customer deposit that must be deposited with the central bank.

The new fresh cut reverses significantly the increase in the CRR by the Monetary Policy Committee (MPC) last September from 27.5 percent to 32.5 percent to tame inflationary pressure.