Regulatory Alerts2012-07-25 | FPR/DIR/CIR/GEN/VOL.01/027Review of Cash Reserve Requirement
This circular from the Central Bank of Nigeria's Financial Policy & Regulation Department informs all deposit money banks in Nigeria that the cash reserve requirement rate has been raised by 400 basis points, from 8% to 12%, effective July 25th, 2012. Additionally, the excess cash reserves above 8% will be remunerated at a rate of 3% per annum, while the maintenance period remains unchanged.
on Department 09-46237402 E-mail: fprd@cbn.gov.ng FPR/DIR/CIR/GEN/VOL.01/027 July 25, 2012 CIRCULAR TO ALL DEPOSIT MONEY BANKS IN NIGERIA REVIEW OF CASH RESERVE REQUIREMENT.
We refer to our circular FMD/DIR/GEN/CIR/02/004 dated October 11, 2011 and the decision of the Monetary Policy Committee at their meeting of Monday and Tuesday July 23 and 24, 2012, and write to notify all deposit money banks as follows:
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The rate for the cash reserve requirement has been revised upward by 400 basis points from 8% to 12% of all eligible deposit liabilities with effect from July 25, 2012.
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The excess cash reserve (4 per cent)above the previous 8% will be remunerated by the Central Bank of Nigeria at the rate of three (3) per cent per annum.
The maintenance period, however, remains unchanged.
Thank CHRIS O. CHUKWU Director, Financial Policy & Regulation Department