CBN Cuts Nigerian Banks' Cash Reserve Ratio to 25 Percent

The Central Bank of Nigeria following its Monetary Policy Committee meeting on Tuesday has decided to keep benchmark interest rate on hold at 13 percent.

The CBN Governor Godwin Emefiele, while briefing newsmen, said the apex bank however loosened monetary policy by cutting banks' cash reserve ratio to 25 percent to ease liquidity shortages.

He said the vote to cut the cash reserve requirement from 31 percent was by 7 to 3 votes of the monetary policy committee, adding that the committee had voted unanimously to keep the main rate unchanged.

Liquidity on the interbank market has dried up since authorities last week forced commercial banks to move government revenue to a Treasury Single Account (TSA) at the central bank, part of a drive by President Muhammadu Buhari to fight graft.