Nigeria’s money supply (M2) surged by 65% year-on-year, reaching ₦107.1 trillion in August 2024, according to data from the Central Bank of Nigeria (CBN).
This reflects a modest month-on-month increase of 0.75% from ₦106.3 trillion in July 2024, and a significant jump from ₦64.8 trillion recorded during the same period in 2023.
In response to the sharp rise in M2, the CBN’s Monetary Policy Committee, during its 297th meeting, voted to raise the Monetary Policy Rate (MPR) by 50 basis points, pushing it to 27.25%.
Alongside this, the Cash Reserve Ratio (CRR) for Deposit Money Banks was hiked by 500 basis points to 50%, while Merchant Banks saw a 200 basis point increase to 16%. Other monetary policy parameters were left unchanged.
Despite the rise in money supply, CBN Governor Olayemi Cardoso announced a plan to inject an additional ₦1.4 trillion into the financial sector to enhance liquidity.
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