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Nigerian central bank retains Monetary Policy Rate at 11.5%

The Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, has announced that the Monetary Policy Committee (MPC)…

The Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, has announced that the Monetary Policy Committee (MPC) of the bank has retained the Monetary Policy Rate at 11.5 percent.Emefiele told journalists after the two-day meeting of the MPC on Tuesday in Abuja that the Cash Reserve Ratio and Liquidity Ratio were also retained at 27.5 percent and 30 percent respectively.

He explained that the MPC decided to hold all parameters constant and that there was unanimous vote by the members of the committee to retain the Monetary Policy Rate at 11.5 percent.

 “In summary, MPC voted as follows, one, retain MPR at 11.5 percent; retain the asymmetric corridor of +100/-700 basis points around the MPR; retain the CRR at 27.5 percent; and retain the Liquidity Ratio at 30 percent,” he said.

Emefiele also announced the CBN has put a stop to the sale of foreign exchange (forex) to the Bureau De Change (BDC) operators in the country with immediate effect.

He explained that the decision was informed by the unwholesome business practices of the operators of the Bureau De Change, which has continued to put enormous pressure on the local currency, the Naira.

He said that the CBN would now sell foreign exchange to deserving Nigerians through the commercial banks.

”The BDCs were regulated to sell a maximum of 5000 dollars per day, but CBN observed that they have since been flouting that regulation and selling millions of dollars per day.

“The CBN also observed that the BDCs aid illicit financial flows and other financial crimes. The bank has thus, decided to discontinue the sale of forex to the BDCs with immediate effect.

“We shall, henceforth, channel all forex allocation through the commercial banks,” he said.

He urged the commercial banks to ensure that every deserving customer got their forex demand, adding that any bank found circumventing the new system would be sanctioned.

“Once a customer presents all required documentation to purchase forex, the commercial banks should ensure they get the forex.

“Any customer that is denied should contact the CBN on 0700385526 or through the email- cbd@cbn.gov.ng ” he added.

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