CBN maintains MPR at 13%, CRR at 31%

 

The Central bank of Nigeria has retained the country's monetary policy rate at 13%, with Cash reserve ratio at 31%.

The CBN Governor Godwin Emefiele who announced this while briefing newsmen on the outcome of the monetary policy committee meeting held in Abuja, said the naira, which has lost around 15 percent against the dollar over the last year with an official devaluation in November and a de facto one in February, was appropriately priced at its current level of 197 to a dollar.

Emefiele who attributed the growth of the economy to the successful general elections held in April, however acknowledged the drop in the all share index of the stock market, due to factors leading to the build up for the elections.

He noted that fuel scarcity could dampen the economy and slow down investment, which could have an inflationary impact on the economy.

The country's foreign reserves has grown to $30bn, just as the declining value of the Naira has put pressure on inflation, which at 9.2 percent is above the upper limit of the apex bank’s range.

The bank has curbed interbank access to hard currency over the last few months in a bid to keep the naira on an even keel, although the restrictions have angered investors and frustrated companies that need dollars for imports.