The Central Bank of Nigeria, CBN has harmonized the reserve ratios to 31%, while retaining all other previous policy measures. The decision was reached at its Monetary Policy Committee meeting in Abuja on Tuesday.
CBN Governor, Godwin Emefiele said the discriminatory currency reserve ratio, CRR has constrained the policy space, while also inciting moral hazards from private market participants.
Mr. Emefiele noted that while additional tightening measures may not be required for now to avoid hitting the polity, he argued that a harmonized CRR was imperative to check abuses and improve efficacy of the monetary policy.
The previous Private and Public sectors CRR were 20% and 75% respectively