CBN to mop up liquidity from Banks by Thursday

The Central Bank of Nigeria has stated that it will implement aggressive cash reserve requirement “CRR” measures by mopping up liquidity from commercial banks by Thursday latest.

He warned banks to fund their accounts immediately.

This was revealed by CBN Governor Godwin Emefiele as he briefed the media following the end of the monetary policy committee meeting.

The Governor also explained that banks that fail to fund their bank accounts will be denied access to the foreign exchange market.

The apex bank believes increased liquidity is one of the major reasons why the exchange rate has been depreciating.

The MPC voted to increase interest rates to a whopping 15.5% as the apex bank battles rising inflation amidst a fiscal crisis.

https://nairametrics.com/2022/09/27/breaking-cbn-to-mop-up-liquidity-from-banks-by-thursday/

The policy-setting committee of the Central Bank of Nigeria (CBN) has raised the monetary policy rate (MPR), which measures interest rate, from 14 percent to 15.5 percent to tame rising inflation.

In July, the interest rate was raised from 13 per cent to 14 percent.

The monetary policy rate (MPR) is the baseline interest rate in an economy, every other interest rate used within an economy is built on it.

Addressing journalists on Tuesday after the committee’s meeting at the CBN headquarters in Abuja, Godwin Emefiele, governor of the apex bank, said 10 members of the committee voted for the rate hike.

In August, Nigeria’s inflation rate rose to a nearly two-decade high at 20.52%.

https://www.thecable.ng/breaking-cbn-raises-interest-rate-to-15-5-to-tame-rising-inflation/amp

And Keyamo will open his loud mouth to tell us that all those endorsed by Afenifere failed to win in previous presidential elections. That should be a mark of respect and a badge of honour for those Yoruba elders.
Keyamo doesn't realise that what an elder sees while sitting on a chair, a youth may never see it even if he climbs an Iroko tree.

If we had listened to these elders in 2015 and 2019 and refused to follow the person who repackaged a failed former military Head of State who since he left office in 1984 could only boast of 150 cows as assets, a Buhari who didn't belong to the board of any company,
who didn't start any foundation even if it's to take Almajiris out of the street,
who didn't write a single book,
who didn't get any new academic qualifications except his controversial military training that got him to the rank of General,
a man who didn't establish any single factory that employed anyone nor a farm holding that produces even if it's eggs like Obasanjo farms,
a man that all he had was fake and questionable acclaim of integrity which Nigerians didn't accept in 2003, 2007, 2011 until he was repackaged by one of the current candidates in conjunction with Obama Campaign Manager David Axelrod as a conduit to achieving his own personal ambition in 2023 we won't be in this mess that all we get is daily pressing of our necks.

I have made up my mind on who among the contestants has the greater potential to turn the country around for good. You can choose your own candidate but do so wisely.

A lot of my friends have Japa from the country already, others are staying back just on a tinge of hope inspired by one of the presidential candidates and if he fails because we usually vote out of tribal and religious sentiments many of them will join the Japa gang next year.

Most youths I meet on the street will tell you that Nigeria don cast, they are not seeing any hope but whenever they watch videos of the most vocal presidential candidate about Nigeria's situation and ways of solving the myriad of problems they see a small tinge of hope in Nigeria.

Please choose wisely, me that is writing this is not finding things easy in this country but there's hope and to the OP pouring out his heart in a previous thread about loosing his job please don't give up, I can personally feel your pains just like many others because hopes of finding another job is slim and news like this is not helpful as companies will find it inconvenient to borrow for expansion with this increase in interest rate, but don't give up, God will not forsake us.

Mumu man mumu cbn

Emefiele is a disaster

I still don't get it, will the interest rates reflect on customer accounts?

Naira will gain value nw.

This Emefiele and hin Fulani economics
May God help us

CBN is very clueless this days ,I just weak

A very nice move to curb inflation and help raise the Naira.
Most people would not understand the implications of this, since they don’t understand how the forex market works


Modified: to all those quoting me, it’s very simple. The game is between demand and supply!..
The naira will fall to about 690 as against the dollar soon… and continue dropping low!.. might take years to reach 500…
But we woudnt see it go higher like upto 750 as against the dollar!

Hope this explains the move of the cbn!
If they don’t do this, poverty rate and hunger would increase because the prices of things would skyrocket more

Thanks

Kuku kill us.

Ok..

It is well. Lending to get more costly.

They can't think on there own, always copying the US federal reserve.
Uk refuses to increase interest rate, that's a thinking country

Primary school economics, this will only have minimal effect for some short period after which the free fall of the naira continues. Foolish people

Kingpele:
CBN is very clueless this days ,I just weak

tishbite42:
This Emefiele and hin Fulani economics
May God help us

B

SIMONEKPA7:
Emefiele is a disaster

Anndrew:
Mumu man mumu cbn

SMH, I think Economics should be made compulsory for everybody and every courses up to university level.


In a lay man explanation. When there are too much money in circulation or when there is a perceived inflation, government regulatory body increases interest rates to banks and bank increase interest rates to customers which reduces customer borrowing from banks and hence reduce money in circulation and reduces inflation.


On the other hand. When there are lesser money in circulation, govt reduces interest rates to banks and bank also reduce to loan borrowers to encourage loans.

In economics, it's explained in terms of bonds.

Modified.
I love the quotes and mentions I am getting from my post. And I love how folks debated my post constructively without insults. Nigerians are actually smart and brilliant ��

Oga devalue the currency, let's know where we are headed. An economy with two exchange rate is bound to collapse, ask Sri Lanka. Devalue the currency to meet the current market rate, so this will enable him to control the situation. But no, mumu man working for mumu president with stupid economic decisions. Can't wait for the next dispensation, honestly this government is really terrible.

If not for the high level of corruption going on in this government, haven't they suppose to remove subsidy by now. Dollar is 725, they exchanged dollar at 425 among themselves, since they are only there to add to our woes. How will they even understand the pains of ordinary Nigerians hustling under the hot sun when all they do is antipeople.

scary stuff.
let's see if this can slow down inflation...

incase you don't really understand what this means, this na wetin dey sup.

when a central bank raise interest rate.
your normal bank will also respond by raising their own interest rate.
with higher interest rate, people will tend to spend less and demand for goods and services will also drop, which will cause inflation to fall.
When demand is low, most companies won't raise their prices in order to stay competitive. since prices of goods and services aren't increasing that fast, you've managed to reduce inflation.
this is how CBN raising interest rates is meant to curb inflation.
but na Naija we dey, our own economics dey always different.

Alexas58:
A very nice move to curb inflation and help raise the Naira.
Most people would not understand the implications of this, since they don’t understand how the forex market works

Kindly educate us more. Thanks

Confused albino man. Aboki ass leaker. His sense has been taking away by late aboki man, issa funtua.

this news no sweet me

OK, let see how this go help naira ...because Nigeria doesn't feel your impact on this inflation of a thing

CBN is either wobbling in the dark or playing the ostrich.

Emiefele na obi brother? just checking something.

APC is cursed

The most lazy way of fighting inflation, just sit and keep increasing interest rates. No incentives, no palliatives.

Alexas58:
A very nice move to curb inflation and help raise the Naira.
Most people would not understand the implications of this, since they don’t understand how the forex market works

please explain it to us in simple terms

Way to go if naira will appreciate

That one no concern me. Let them pump dollars into circulation and everything will be alright. I bought a dollar at 720 today. APC is a disaster to this nation. Cefa is now more valuable than naira. What a pity We've seen enough change they promised us. May the APC never near power again.

Urchins, if you like, shout Emilokan till next year, it will always pass in deaf ears. Wetin we go do dey our mind.

Buharinomics at its best. turning the financial market on its head.

Raising interest rates may hurt sme in the long run due to unavailability of cheap serviceable loan.

Dollar about to hit all time high by Friday. Who need dollar?