CBN directs banks to keep 50% of public sector deposit as cash

Central Bank of Nigeria, CBN has further reduced the amount of money in the economy by directing banks to keep 50 per cent of public sector deposits as Cash Reserve Requirement, CRR.

The apex bank took this decision at the end of its Monetary Policy Committee, MPC, meeting in Abuja.

The Governor of the CBN, Sanusi Lamido Sanusi, who announced this said the CRR on private sector deposits remained at 12 per cent adding that the Monetary Policy Rate was also retained at 12 per cent, with a corridor of +/- 200 basis points.

Sanusi said the 50 per cent CRR applies to all federal, states and local government deposits on the balance sheet of deposits money banks.