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

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Monday, July 24, 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:

  1. Mtchewwww

    Noise all the time

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




    @Anonymous Orubebe

    ReplyDelete
    Replies
    1. Don't even understand anything

      Your comment will be visible after approval

      Delete
  2. 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.

    ReplyDelete
  3. Bad government. Everything about APC government very bad.

    Another round of sacking this time.

    May God help us all

    ReplyDelete

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