The total amount of Deposit Money Banks’ (DMBs’) reserves with the Central Bank of Nigeria (CBN) stood at N3.7 trillion at the end of February, 2014, the central bank has said.
According to the latest central bank money and credit statistics for February, the amount represents a decrease of N116 billion, compared to the N3.816 trillion recorded in January 2014.
Bank reserves are DMBs’ deposits with the central bank that are not to be lent out. It is held as part of risk management measures.
The amount is expected to rise further as a result of the Monetary Policy Committee (MPC) decision to raise the Cash Reserve Requirement (CRR) for private sector deposits to 15 per cent.
Data from the central bank as at December 2013 showed that out of the N7 trillion available funds, private sector deposit represented approximately 53 per cent, translating to N3.7 trillion.