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CBN Announces Interest Rate Increment

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BREAKING: CBN Announces Interest Rate Increment

The Central Bank of Nigeria (CBN), on Tuesday, January 24, 2023, announced the increment in the Monetary Policy Rate (MPR), which measures interest rate from 16.5% to 17.5%.

CBN raised the interest rate believing it will tame inflation.

The MPC raised the monetary policy rate by 100 basis point to 17.5% and kept the asymmetric corridor at +100/-700 basis points around the MPR.

The MPC retained Cash Reserve Ratio (CRR) by 32.5% while liquidity ratio is kept at 30%.

The CBN also said its January 31, 2023 deadline for the validity of the old N200, N500, and N1,000 notes remains.

Recall that CBN on October 26, 2022, had announced its plan to redesign the three banknotes. President Muhammadu Buhari subsequently unveiled the redesigned N200, N500 and N1,000 notes on November 23, 2022, while the apex bank fixed January 31 deadline for the validity of the old notes.

The CBN also pegged its weekly cash withdrawal limits to N500,000 for individuals and N5m for corporate firms.

There have been concerns from many Nigerians over the slow spread of the three new naira notes as the January 31 2023 deadline approaches but the apex bank has insisted that the date stands.

The CBN also recently directed commercial banks to halt over-the-counter payment of the new notes and load their Automated Teller Machines (ATMs) with the redesigned naira notes to boost circulation.

The apex bank also launched a cash swap programme nationwide to enable those in the unbanked areas to exchange their old notes for new notes before the deadline.

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Economy

CBN’s New Naira: Peter Obi Breaks Silence, Requests Patience from Nigerians

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CBN's New Naira: Peter Obi Breaks Silence, Requests Patience from Nigerians

Peter Gregory Obi, the presidential candidate for the Labour Party, has urged Nigerians to be patient with the Central Bank of Nigeria over the New Naira notes.

The former governor of Anambra State, who finally spoke out about the new naira notes, claim that the currency redesign will have major long-term economic advantages.

He stated; “The currency redesign is not peculiar to Nigeria. It is an exercise that comes with some inconvenience and pain but it has significant long-term economic and social benefits. Even though there are improvements that can be made.

READ ALSO: Buhari Vows To End Naira Scarcity, Sets Deadline

“I urge Nigerians to bear with the CBN and Federal Government with the hope that the general populace and Nigeria will harvest the gains that will come with the reforms.”

Peter Obi also begged the Central Bank of Nigeria (CBN) and the banks to speed up efforts to make the new currency available to small depositors and the unbanked in order to lessen the suffering of Nigerians, particularly the poor and those living distant from banks in rural regions.

Remember that the Central Bank of Nigeria declared on October 26, 2022, that the 200, 500, and 1,000 notes will be redesigned.

The new naira notes came into circulation on December 15, 2022, and is used alongside the current notes (which will expire on the 10th of February).

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Economy

Dollar To Naira Exchange Rate Today (Fri. Feb. 3, 2023)

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Dollar To Naira Exchange Rate Today (Fri. Feb. 3, 2023)

Dollar to naira, on Friday, February 3, 2023, opened at (undisclosed) at the Investors & Exporters FX window ( I&E FX Window), where the currencies officially trade.

According to the data at the FMDQ Security Exchange where forex is traded officially, the dollar to naira exchange rate stood at (undisclosed).

This would mean that the Nigerian currency either gained or lose in value against the United States dollar, as the foreign exchange (forex) trading closed at N460.54 per $1 on Wednesday, February 1.

How much is the dollar to naira at the black market today?

Going by sources at the Bureau De Change (BDC) in Lagos, the dollar to naira last traded between N732 and N760 with an average of N751.00 in the black market in the state.

It is however pertinent to note that the Central Bank of Nigeria (CBN) does not recognise the parallel market (black market), as it has directed individuals who want to engage in forex to approach their respective banks.

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Economy

Ex-CIBN Chief Advises CBN On New Naira Notes

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Ex-CIBN Chief Advises CBN On New Naira Notes

A former President and Chairman of the Council of Chartered Institute of Bankers of Nigeria (CIBN), Prof. Segun Ajibola, has stressed the need for the Central Bank of Nigeria (CBN) to drive financial inclusion, especially in rural areas so that Nigerians would not be stampeded into exchanging their old naira notes for new ones.

Ajibola who was a guest on The Morning Show, Arise News Channel, spoke on the backdrop of the apex bank deadline of old naira use. He stated that regulators owe Nigerians a duty to ensure that the exercise is seamless within the time frame, adding that there is no reason why the old notes should be stockpiled in homes or offices.

According to him, “as a country, we still have a lot to do in terms of financial inclusion. Available statistics showed that barely 50 per cent of Nigerians from the age of 18 and above, are not financially included as at today which means half of the population that should be financially inclusive, are still excluded.

“That is one of the reasons why there is still so much pressure. If majority of Nigerians have embraced financial inclusion, as a way of life, we will not have the kind of pressure we have been having in terms being stampeded to change from the old to new naira notes. It doesn’t have any reason being stockpiled in homes or offices. So we need to re-evaluate.”

He however expressed concern that there is a limit to what the apex bank can do about the bank’s swapping the old naira notes to new ones within the spate of time until the recent extension, saying that with the efforts of the regulators, there is need to know where the disconnect is.

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