GoldenNewsNG
  • Home
  • News
  • Education
  • Business
  • Jobs
  • Daily Guides
  • About Us
  • Advertise with Us
  • Home
  • News
  • Education
  • Business
  • Jobs
  • Daily Guides
  • About Us
  • Advertise with Us
No Result
View All Result
Golden News
No Result
View All Result

Reasons Monetary Policy Rate Was Increased – CBN

The CBN Governor, Godwin Emefiele, had said that the decision was informed by persistent rise in inflation rate and fragile economic growth.

Rojon by Rojon
January 11, 2024
in News
Reading Time: 3 mins read
Reasons Monetary Policy Rate Was Increased – CBN
153
SHARES
Advertisements

Godwin Emefiele, the Central Bank of Nigeria has given an insight why it increased the Monetary Policy Rate.

Goldennewsng reports that according to NAN, CBN says its Monetary Policy Committee’s took the decision to control rising inflation.

CBN’s Director, Monetary Policy Department, Hassan Mahmoud, said this on Wednesday at a post-MPC briefing tagged: “Unveiling Facts behind the Figures’’.

READ ALSO

SUG Leaders tasked to join fight against Sexual, Gender Based Violence in Higher Institutions across Niger state

Nigerian Banks Resume International Transactions on Naira Debit Cards

The MPC, in its 287th meeting on Tuesday, had increased the MPR by 150 basis points, from 14 per cent to 15.5 per cent.

The MPR is the baseline interest rate in an economy on which other interest rates within that economy are built on.

The CBN Governor, Godwin Emefiele, had said that the decision was informed by persistent rise in inflation rate and fragile economic growth.

According to Mahmud, the MPC got to a point where stringent measures have to be taken to control inflation.

He said that the committee took cognisance of global as well as local economic issues in arriving at its policy decisions.

“We raised the MPR because it is necessary to do so. The quantity of money in the system was too much for the economy to absorb,’’ he said.

He said that monetary policy tools were meant to deal with short term risks, adding that the idea was to make the cost of funds expensive to drive down inflation.

According to Mahmud, the stimuluses that governments across the world provided for their citizens during COVID-19 increased the ability of people to spend, thereby, creating challenges with global supply.

 

“A lot of households and small businesses were injected with stimuluses; the U.S did two trillion dollars, Nigeria did about five trillion Naira, these increased the ability of people to spend.

 

“But the supply side could not meet up with the demand because that volume of injection was far more than the regular intake for those economies, this made prices to go up,’’ he said.

He also blamed the Russian-Ukraine war, as well as the resurgence of COVID-19 in China as responsible for rise in global inflationary trend.

“That region accounts for more than 50 per cent of global commodity supply and 38 per cent of global oil and gas supply.

“The war resulted to some shortages which made prices to go up.

“Then the COVID-19 lockdown in China. The country is the largest importer of commodities across the globe,’’ he said.

Speaking on the various economic intervention initiatives by the apex bank and the prospect of recouping the funds, Dr Yusuf Yila, director, Development Finance Department, said about nine trillion Naira had been invested in the various development finance interventions.

He, however, said that all the monies would be recovered.

 

According to Yila, N9.3 trillion has been invested in various development finance interventions, out of which N3.7 trillion has been repaid.

“Most of the loans are still under moratorium, especially those in manufacturing. Manufacturing forms the largest part of our portfolio, about 31 per cent,’’ he said.

He, however, said that one of the best-performing interventions was the Commercial Agriculture Credit Scheme, where out of the N800 billion that was lent out, about N700 billion had been repaid.

Yila said that through the flagship agriculture intervention scheme, the Anchor Borrowers Programme, one trillion Naira had been lent out to smallholder farmers, while about N400 billion has so far been recovered.

According to him, the department will restrict intervention to critical sectors like the SMEs and the electricity sector for now.

Speaking on the depreciation of the Naira, the Director, Trade and Exchange Department, Mrs Ozoemena Nnaji, said the apex bank was taking steps to firm up the currency.

Nnaji said that demand for foreign exchange outstripped supply currency, adding that the CBN was doing a lot to mop up supply.

 

“One of the steps is the Naira for dollar remittance drive, which has resulted to a huge increase in diaspora remittances.

 

“There is also the RT200 bringing in forex. Repatriation has gone up from 20 million dollars in the first quarter to about 600 million dollars in the second quarter.

“In this third quarter we are looking at more than one billion dollars of repatriated inflows,’’ she said.

📢 JOIN OUR WHATSAPP GROUP 📢 JOIN OUR TELEGRAM CHANNEL
Previous Post

BBNaija: Erica Announces The Release Of Her First Song

Next Post

Admitting To Cheating Is Crazy – Ex-Bbnaija Angel Smith

Related Posts

SUG Leaders tasked to join fight against Sexual, Gender Based Violence in Higher Institutions across Niger state

  ... Want bill on sexual harassment passed into law Group photograph As part of efforts to end Sexual and...

Read moreDetails

Nigerian Banks Resume International Transactions on Naira Debit Cards

Nigerian Banks Resume International Transactions on Naira Debit Cards

Nigerian Banks Resume International Transactions on Naira Debit Cards as FX Liquidity Improves GoldenNewsNg reports that after nearly three years...

Read moreDetails

Apply Now: Lagos State TESCOM Teachers Recruitment 2025 | Application Portal, Requirements, and Deadline

Lagos State TESCOM Teachers Recruitment 2025

Lagos State Teachers Recruitment 2025 - The Lagos State Government is planning to restore the discipline, structure, ethics, and investments...

Read moreDetails

Dollar to Naira Black Market Exchange Rate today 5th July 2025 – AbokiFX

Dollar to Naira Black Market Exchange Rate today 5th July 2025 – AbokiFX

Dollar to Naira Black Market Exchange Rate today, 5th July 2025, can be accessed below.   GoldenNewsNg has obtained the...

Read moreDetails

Breaking: Court Reinstates Senator Natasha, Slams Senate Over Excessive Suspension

Breaking: Court Reinstates Senator Natasha, Slams Senate Over Excessive Suspension

Abuja, FCT – The Federal High Court in Abuja has ordered the Senate to immediately recall Senator Natasha Akpoti-Uduaghan, representing...

Read moreDetails

FG to Enforce Vehicle Recycling Policy by October 2025, Targets 40,000 Jobs

Vehicle Recycling Policy

FG set to Enforce Vehicle Recycling Policy by October 2025, Targets 40,000 Jobs   GoldenNewsNg reports that the Federal Government...

Read moreDetails

Tensions Rise as Court Finds Senator Natasha Guilty of Contempt in Civil Case Against Akpabio

Breaking: Court Reinstates Senator Natasha, Slams Senate Over Excessive Suspension

The Federal High Court in Abuja has found suspended Senator Natasha Akpoti-Uduaghan, who represents Kogi Central, guilty of contempt of...

Read moreDetails

ADC Youths Rejects Atiku, Amaechi, El-Rufai

ADC Youths Rejects Atiku, Amaechi, El-Rufai

ADC Youth Wing Rejects Atiku, El-Rufai, Peter Obi Coalition Takeover Plan GoldenNewsNg reports that the Youth Wing of the African...

Read moreDetails

FG Sets Petrol Pricing Forum as Marketers Demand Transparency

Petrol Pricing Forum

FG Sets Petrol Pricing Forum for July 23–24 as Marketers Demand Transparency GoldenNewsNg reports that the Federal Government has scheduled...

Read moreDetails

Dollar to Naira Black Market Exchange Rate today 4th July 2025 – AbokiFX

Dollar to Naira Black Market Exchange Rate today 5th July 2025 – AbokiFX

Dollar to Naira Black Market Exchange Rate today, 4th July 2025, can be accessed below.   GoldenNewsNg has obtained the...

Read moreDetails
Load More
Next Post
Admitting To Cheating Is Crazy – Ex-Bbnaija Angel Smith

Admitting To Cheating Is Crazy - Ex-Bbnaija Angel Smith

SEARCH ADS

Latest Posts

FMYD Opens Registration for Data Protection Training for Youths
Headline

FMYD Opens Registration for Data Protection Training for Youths

Education

SUG Leaders tasked to join fight against Sexual, Gender Based Violence in Higher Institutions across Niger state

DESOPADEC Begins N50,000 Bursary Payouts in August
Education

DESOPADEC set to Commence N50,000 Bursary Payment

Hard Skills Mentorship Programme Empowers Young Nigerian Women
Headline

Apply Now: Soft Girl, Hard Skills Mentorship Programme Empowers Young Nigerian Women

Nigerian Banks Resume International Transactions on Naira Debit Cards
business

Nigerian Banks Resume International Transactions on Naira Debit Cards

Headline

Over 51,000 Adamawa Residents Receive ₦75,000 Each Through FG Conditional Cash Transfer Programme

Apply for FG and Amazon Web Services Digital Skills Program for Nigerians
Headline

Apply for FG and Amazon Web Services Digital Skills Program for Nigerians

Lagos State TESCOM Teachers Recruitment 2025
Headline

Apply Now: Lagos State TESCOM Teachers Recruitment 2025 | Application Portal, Requirements, and Deadline

FG Partners DBN To Provide Grants To 3MTT Nigeria Fellows
Headline

FG Partners DBN to Provide ₦100 Million Grant to 3MTT Nigeria Fellows

Dollar to Naira Black Market Exchange Rate today 5th July 2025 – AbokiFX
business

Dollar to Naira Black Market Exchange Rate today 5th July 2025 – AbokiFX

© 2024 Golden News

  • About Us
  • Advertise with Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms And Conditions
No Result
View All Result
  • Home
  • News
  • Education
  • Business
  • Jobs
  • Daily Guides
  • About Us
  • Advertise with Us

© 2024 Golden News