CBN implements a revised cash reserve approach


The Central Bank of Nigeria has announced the discontinuation of daily Cash Reserve Ratio debits, opting for an updated Cash Reserve Requirement mechanism.

This strategic shift aims to enhance banks’ ability to plan, monitor, and align their records with the apex bank.

The decision was communicated through a circular titled ‘Cash Reserve Requirement Framework Implementation Guidelines,’ signed by Dr Adetona Adedeji, the Acting Director of the Banking Supervision Department.

The Cash Reserve Ratio, representing the percentage of cash held in reserves against total deposits, will be subject to a structured implementation process outlined by the CBN.

This includes a phased approach, utilizing the Incremental Approach in Phase 1 and enforcing a 50% CRR levy in Phase 2 for banks falling short of the minimum Loan to Deposit Ratio.

The CBN has committed to providing banks with comprehensive details of applied charges and their underlying computation rationale.


Please enter your comment!
Please enter your name here

Share post:




More like this

Veekee James, Fireboy DML, Victor Osimhen, Tyla make Forbes Africa “30 Under 30” 2024 

Veekee James, Fireboy DML, Victor Osimhen, Tyla make Forbes...

Paradox of Progress and Patriotism – The Unpatriotic Response to Nigeria’s Advancements.

🇳🇬 Paradox of Progress and Patriotism - The Unpatriotic...

Naira Abuse: Understanding the Law and Avoiding Penalties

Like the national flag, anthem and even the international...