New cbn policy
You're referring to the new monetary policy of the Central Bank of Nigeria (CBN). Here are some key highlights:
Monetary Policy Rate (MPR): The CBN has maintained the MPR at 11.5% since July 2020, which is the lowest rate in over 10 years. This is to stimulate economic growth and reduce borrowing costs.
Cash Reserve Ratio (CRR): The CRR, which is the percentage of customer deposits that commercial banks must hold as reserves, has been reduced from 22.5% to 27.5% to increase liquidity in the banking system.
Liquidity Ratio: The CRR has also been increased from 30% to 35% to ensure that banks maintain a minimum level of liquid assets to meet their short-term obligations.
Open Market Operations (OMO): The CBN has continued to conduct OMO auctions to absorb excess liquidity in the system and manage inflationary pressures.
Foreign Exchange Policy: The CBN has maintained a flexible exchange rate regime, allowing the naira to float freely against major currencies. This has helped to stabilize the foreign exchange market and reduce the demand for foreign exchange.
Other Measures: The CBN has also introduced other measures to support the economy, including:
- T-Bills Auctions: The CBN has continued to conduct regular T-Bills auctions to raise funds for the government and manage liquidity in the system.
- Supplementary Budget: The CBN has provided support to the government by financing its supplementary budget through the sale of T-Bills and OMO.
- Credit to the Private Sector: The CBN has continued to provide support to the private sector by increasing credit to the sector through its various intervention programs.
- Inflation Targeting: The CBN has maintained its inflation targeting framework, which aims to keep inflation within a single digit (9.9%) by the end of 2023.
Overall, the CBN's new monetary policy is aimed at promoting economic growth, reducing inflation, and maintaining financial stability in Nigeria.