8 Nigerian Banks Meet New Recapitalisation Target As CBN Retains 27.5% Interest Rate
By: Olufemi Orunsola
The Governor of Central Bank of Nigeria (CBN) has disclosed that eight banks had achieved the new recapitalisation requirements, revealing that the current Monetary Policy Rate (MPR) of 27.5 percent with all policy parameters is being maintained.
The CBN, Governor, Mr. Olayemi Cardoso, disclosed this at the MPC briefing in Abuja.
Consequently, the asymmetric corridor was retained at +500/-100 basis points around the MPR, leaving the Cash Reserve Ratio at 50 per cent for Deposit Money Banks and a general Liquidity Ratio of 30 percent.
Mr. Cardoso explained that the decision to maintain the current MPR was premised on the need to continue to ensure the ongoing disinflation while vigorously ensuring declining prices.
The CBN boss revealed that as of July 18, the nation’s foreign reserve stood at 40.1 billion, which could provide import cover of nine and a half months.
He further said the monetary and fiscal authorities would continue to work together to reduce the nation’s inflation rate to a single digit.
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