Excess Liquidity in banking sector reduced to under N100bn in November – CBN

The Central Bank of Nigeria said Liquidity in the entire banking sector was reduced to under N100 billion in November 2023.

The CBN Governor, Olayemi Cardoso, disclosed this on Friday during his remark at the 58th Bankers Dinner of the Chartered Institute of Bankers of Nigeria in Lagos.

He said Sustained Cash Reserves Requirement recorded debits that moderated Liquidity in September and October 2023.

According to him, measures by the apex bank have reduced excess Liquidity in the banking system and significantly increased the Overnight Bank Borrowing rate consistent with the monetary policy program.

“Sustained Cash Reserve Requirement debits have moderated Liquidity in September and October 2023. Liquidity in the entire banking sector has been significantly reduced to under N100 billion in November. Inauguration of a new liquidity management committee within the Bank that meets daily at 8 a.m. to assess liquidity conditions and ensure optimal levels. These measures have already started to yield results, as excess Liquidity in the banking system has significantly reduced and the Overnight Bank Borrowing rate has increased to a level consistent with the monetary policy program”, he said.