By Seun Ibiyemi
The Central Bank of Nigeria (CBN) under Governor Yemi Cardoso has seen a significant boost in Nigeria’s banking reserves, reaching N26.8 trillion in August 2024, up from N19.4 trillion a year earlier.
This surge follows the CBN’s persistent efforts to combat inflation and manage liquidity in the financial system.
In a recent Monetary Policy Committee (MPC) meeting, the CBN raised the Monetary Policy Rate (MPR) by 50 basis points to 27.25 percent, continuing its tightening measures.
Moreover, the Cash Reserve Ratio (CRR) was hiked by 500 basis points to 50 percent, demonstrating the apex bank’s commitment to liquidity control and economic stabilisation.
Governor Yemi Cardoso’s strategic use of the CRR has been pivotal in boosting reserves and addressing inflationary pressures, with incremental increases from 32.5% to the current 50% since assuming office.
The recent adjustment of the CRR for Merchant Banks to 14% has further expanded liquidity management, contributing to the remarkable growth in bank reserves.