CENTRAL BANK DEVALUES NAIRA

            

The Central Bank of Nigeria announced on Tuesday in Abuja the devaluation of Naira by N13 as part of the steps taken  to strengthen the country's economy as a result of dwindling oil price

Mr Godwin Emefiele Tuesday  after a meeting of The Monetary Policy Committee announced that
The Naira will now exchange for N168 instead of N155 to a dollar, other decisions taken was the increase of the Monetary Policy Rate MPR, by 100% point from 12% to 13%, MPR is the rate at which Banks lend from the Central Bank to cover their cash shortfall.
The higher the MPR rate of borrowing the higher the rate Banks advance credit to customers

Mr Emefiele also stated that there is an increase in Cash Reserve Ratio,CCR on private sector deposit by 500 basis point from 15% to 20%

The CCR is a Monetary Tools used to call up excess liquidity or release fund needed for the growth of the economy.

He added that  the Public CCR will remain at the current level of 75% and the symmetric corridor of plus or minus 200 basis point around the MPR will be maintained

"The Public sector should retain at 75% and foreign exchange position should be retain at 1%" Emefiele said

He called on the Federal Government and The National Assembly to speed up the passage of the Petroleum Industral Bill, ( PIB)