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.
CBN To Mop Up Liquidity From Banks By Thursday
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.
The Central Bank during its last MPC meeting had increased the interest rate from 11.5% to 14% in the last two meetings, however with the inflation rate still spiking above 20%, the CBN has raised the rate further to 15.5% in a bid to combat the rising cost of goods and services.