Again, CBN Retains MPR at 11.5%, Bans Black Market

CBN Governor Godwin Emefiele

By Tony Obiechina, Abuja 

The Central Bank of Nigeria has retained the 11.5 per cent interest rate for the country’s lending benchmark.
The CBN Governor, Godwin Emefiele revealed this at the end of the Monetary Policy Committee meeting held on Friday in Abuja.

The committee members had in July voted to retain MPR at 11.5 percent, a rate it had been since September 2020.

Emefiele hinged the decision on the prediction that the country’s economy would continue to improve on the successful vaccination programme.

The MPC expressed delight in the country’s output growth, but is worried about the rate of inflation which is currently at 17.01 per cent as of August 2021.

The apex bank governor revealed that Anchor Borrower’s Programme beneficiaries received N798bn.

According to him, industrial credit rose to N22.2trn at the end of June 2021.

On the management of exchange rate, the apex bank warned banks to ensure transparency on foreign exchange dealings.

The CBN said it only recognizes the importers and exporters window in the FX market, adding that the black market is illegal.

The CBN also disclosed that Aboki FX is being investigated for illegal FX transactions and speculative rates.

He vowed to eliminate illegal Foreign Exchange dealers in the forex market.

He said investment in naira denominated currency has become less attractive.

Key Highlights of the meeting:

MPR retained at 11.50%

The asymmetric corridor of +100/-700 basis points around the MPR

CRR was retained at 27.5%

Liquidity Ratio was also kept at 30%

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