CBN leaves lending rate at 13.5%, sticks to cashless policy

The CBN Governor, Mr Godwin Emefiele, announced the decision of the committee at the end of a two-day meeting held at the apex bank’s headquarters in Abuja.

He explained that 9 out of the 11 members that attended the meeting unanimously agreed to hold the monetary policy stance.

The governor said apart from the MPR that was retained at 13.5 per cent, the committee decided to hold the Cash Reserves Ratio at 22.5 per cent.

Also retained are the Liquidity Ratio which was left at 30 per cent; and the Asymmetric Window which was left at +200 and -500 basis points around the MPR.

Commenting on the proposed hike in the Value Added Tax (VAT) the apex bank boss said it was pertinent as there was the need to spend money to provide for Nigerians and that since there were outcries concerning the nation’s debt profile, the government had no option but to either borrow or source alternative avenues for funds.

On the withdrawal and deposit charges introduced by banks, he said the policy was not new only that it was being re-introduced to check excess liquidity in the system as well check fraudulent transactions.

Emefiele further stated that it was not meant to affect small depositors but those from N500,000 and above.

He said the cashless policy would be fully implemented from March 2020, when the 36 states will be covered, adding that this will aid the financial inclusion programme, adding that there will be a proliferation of e-payment mechanisms that will ease financial transactions.

He assured that only those without questionable character will be granted licence to operate the mobile money programme of the federal government.

The CBN boss assured that the P&ID issue has not negatively affected the nation’s foreign reserves, but that it was a fraudulent transaction that must not be allowed in Nigeria.

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