CBN defends 75% reserve requirement on public deposits
The Central Bank of Nigeria defended its 75% Cash Reserve Ratio on non-Treasury Single Account public sector deposits, introduced at the September 2025 Monetary Policy Committee meeting. The policy aims to manage liquidity, contain inflation, restrict excess liquidity in the banking system, and strengthen monetary policy transmission, though it limits funds banks can lend from those deposits.
Pidgin: CBN don defend im 75% Cash Reserve Ratio wey dem put on non-Treasury Single Account public sector deposits wey dem introduce for September 2025 Monetary Policy Committee meeting. Di policy na to manage liquidity, control inflation, restrict too much money wey dey inside banking system and make monetary policy work well, although e go limit di money wey banks fit use from dose deposits for lending.
How this affects you: No direct impact stated in source.
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