At the MPC meeting, the committee members unanimously voted in favour of retaining the monetary policy parameters: – the MPR at 11.5%; the asymmetric corridor of +100/-700 basis points around the MPR; the CRR at 27.5%: the Liquidity Ratio at 30%, allowing the current recovery of output growth and decline in inflation to continue smoothly, and gradually moving the economy to a sustainable path before adjustments are made to the stance of policy.
Also, the committee stated the various interventions made to different sectors of the economy, such as the cumulative release of ₦798.09Bn to 3.9Mn under the Anchor Borrowers Programme, the disbursement of ₦134.57Bn in support of the MSMEs, ₦41.06Bn to ten DisCos under the National Mass Metering Programme (NMMP) for the procurement and installation of 759,748 electricity meters among others.
On the exchange rate management, the committee urged the CBN to take further steps to restrict the activities of unauthorised and illegal dealers in the foreign exchange market, adding that all foreign exchange transactions must be conducted at the I&E window to ensure transparency and stability.
However, the CBN accused the AbokiFX (a parallel market exchange rate updating website) of updating Nigerians on the false value of the Naira and carrying out an illegal activity that undermines the economy.
In that regard, AbokiFX has announced the temporary suspension of exchange rate publication on its platform until better clarity of the situation is observed. This implies that most users of the update from the platform may begin to pay for the subsequent update of the exchange rate in the parallel market.
Finally, to strengthen the Naira in the FX market, we believe that the CBN should further improve the liquidity in the FX market and relax the restriction of $100/month for FX transactions on naira debit cards for legitimate foreign transactions.