Stella Dimoko Korkus.com: Cash Crunch Hits Banks As CBN Mops Up Naira

Advertisement

Advertisement - Mobile In-Article

Monday, 24 July 2017

Cash Crunch Hits Banks As CBN Mops Up Naira

In order to reduce demand for foreign exchange, especially the dollar, the Central Bank of Nigeria has engaged in continuous and aggressive mop up of cash from the economy in the past six months.



The development is said to be responsible for the cash crunch that has hit the economy with a heavy toll on consumers (households), companies and commercial banks, especially mid-size lenders in the country.

trillions of naira in the past six months, according to top bankers who spoke on condition of anonymity.

The development has made the lending rate to soar, especially among the Tier-1 banks, which are able to do little lending at the moment.

While mid-sized banks are struggling to maintain their liquidity positions due to the shortage of naira, the situation is making it increasingly difficult for companies to access credit to expand their operations.

“The loan book of banks is growing leaner and leaner because of the tight liquidity situation the CBN’s actions have put the banks,” a top executive of a commercial bank, who spoke on condition of anonymity, said.

Edited from Punch

5 comments:

Anonymous said...

Mtchewwww

Noise all the time

They keep SHOUTING without doing anything meaningful with the fall in Naira




@Anonymous Orubebe

Miss Ess said...

Well then

Anonymous said...

This government is so clueless, it's a shame. No sound economic policy. Just try ur luck all the way. Buhari must continue to suffer for the evil he has perpetrated on this dead nation.

Alloy Chikezie said...

Don't even understand anything

Your comment will be visible after approval

Yori Yori Princess Loveme Jeje said...

Bad government. Everything about APC government very bad.

Another round of sacking this time.

May God help us all

Related Posts Plugin for WordPress, Blogger...

Advertisement