The monetary policy committee (MPC) of the Central Bank of Nigeria (CBN) Tuesday announced the retention the monetary policy rate (MPR) at 11.5 percent.
The apex bank has also stopped with immediate effect the sale of forex to Bureau De Change operators.
This is even as it left the assymetric corridor of +100/-700 basis points around the MPR.
Governor of the CBN Godwin Emefiele, announced this after the Monetary Policy Committee meeting that began Monday. This rate has been in use since September 2020.
“The MPC made the decision to hold all policy parameters constant. Committee thus decided by a unanimous vote to retain monetary policy rate at 11.5%,” Emefiele said.
“MPC voted to retain asymmetric corridor +100 -700 basis points. It also voted to retain cash reserve ratio at 27.5% and retain liquidity ratio at 30%.”
The action of the CBN monetary policy committee is in line with the recommendation of the IMF.
In its latest World Economic Outlook (WEO) released on Tuesday, IMF advised central banks to look through transitory inflation pressures and avoid tightening until there is more clarity on underlying price dynamics.
“Clear communication from central banks on the outlook for monetary policy will be key to shaping inflation expectations and safeguarding against premature tightening of financial conditions,” IMF said.
The Washington-based institution projected growth of 2.5 percent for Nigeria in 2021 on the slow rollout of vaccines.
In a related development, the CBN has stopped the sale of forex to the Bureau De Change operators in the country with immediate effect.
The CBN Governor, Godwin Emefiele, who disclosed this after the Monetary Policy Committee meeting.
Speaking on the decision to stop forex sales to the BDCs, he said, the MPC noted with disappointment and great concerns that the BDCs had defeated their purpose of existence to provide forex to retail user, but instead, they had become wholesale and illegal dealers.
The BDCs, he observed had continued to make huge profits while Nigerians suffered in pain.
He said the commercial banks would be monitored to provide forex for the legitimate use of Nigerians.
“The Central Bank will henceforth discontinue the sale of forex to Bureau de Change operators,” Emefiele said.