Cash Reserve Ratio

The International Monetary Fund (IMF) has endorsed the Central Bank of Nigeria’s decision to increase the interest rate to 22.75 per cent. The Monetary Policy Committee of the CBN at its last meeting raised the policy rate by 400 basis points. The committee also voted to keep the Cash Reserve Ratio (CRR) at 45 per cent while the Liquidity Ratio was retained at 30 per cent. Nigeria’s high inflation rate, hitting 29.9 per cent in January 2024, intensified pressure on the naira. This surge, driven by rising food…