CBN Apex bank harmonizes CRR at 31%

The step was taken on Tuesday, May 19, 2015, in a bid to improve monetary policy in the country and will apply to both the public and private sector.

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CBN Governor, Godwin Emefiele play

CBN Governor, Godwin Emefiele

(Bella Naija)
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The Monetary Policy Committee (MPC) has harmonized the Cash Reserve Requirement (CRR) to 31 per cent.

The step was taken on Tuesday, May 19, 2015, in a bid to improve monetary policy in the country and will apply to both the public and private sector.

This was disclosed by the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele in Abuja.

“Nine members voted to harmonise the public and private sector’s CRR at 31 per cent. Two members voted to remunerate the portion of the CRR. All members voted to retain all other decisions taken at the last meeting of the monetary policy committee while improving the implementation of the CRR regime,” Emefiele said.

“What we have done is to have a composite rate. There is no need for us to have CRR segregated for the private sector and the public sector deposit. The 31 per cent is just a composite rate which just brings it together and there is no need for anybody to continue to wonder whether we are taking CRR based on public sector or on private sector. It is basically for us to achieve the efficacy of the CRR regime of the monetary policy,” he added.

The committee voted to retain the MPR at 13 per cent, with a corridor of plus or minus 200 basis point around the midpoint, while the liquidity ratio was also retained at 20 per cent.

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