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CBN pegs monetary policy rate at 11.5%

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Godwin Emefiele Gambia CBN Nigeria CBG



The Central Bank of Nigeria has retained the Monetary Policy Rate at 11.5% at the end of its committee meeting on Tuesday.

This was disclosed by the CBN Governor, Godwin Emefiele who read the communique at the end of the committee’s meeting.

A policy rate is adopted by the monetary authority of a nation to control either the interest rate payable for very short-term borrowing (borrowing by banks from each other to meet their short-term needs) or the money supply, often as an attempt to reduce inflation or the interest rate, to ensure price stability and general trust of the value and stability of the nation’s currency.

Apart from the MPR which was retained at 11.50%, the CBN monetary policy members also voted to keep the asymmetric corridor of +100/-700 basis points around the MPR.

The CRR was retained at 27.5%, while the Liquidity Ratio was also kept at 30%.

In a related development, the Central Bank of Nigeria has released a list of approved international money transfer operators.

Reports say that IMTOs accept cash for the purpose of transmitting to persons resident in Nigeria or another country.

They also carry out cross-border transfer services for personal purposes such as money transfer services towards family maintenance and money transfer services for foreign tourists visiting Nigeria.

As part of efforts to deepen foreign exchange liquidity, the apex bank directed deposit money banks (DMBs) to close naira accounts of IMTOs in December 2020.

The CBN had recently warned that unlicensed money transfer operators would have their accounts in Nigerian banks closed, including being restricted from accessing banking services in the country.

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