CBN Kicks Against Dollarisation Of Economy, To Penalise Perpetrators

Written by on March 25, 2015

Mr Godwin Emefiele

Mr Godwin Emefiele

The Central Bank of Nigeria (CBN) has condemned in strong terms the dollarisation of the economy and vowed to go after perpetrators of the act. This is as the apex bank said it retained all monetary policy rates at the end of the two-day monetary policy committee (MPC) meeting which was held in Abuja on Monday and yesterday.

The governor of the CBN, Mr Godwin Emefiele, who read the communique of the meeting attended by 11 out of 12 members, said that all 11 members unanimously voted to retain the monetary policy rate at 13 per cent and the cash reserve ratio (CRR) on private sector deposits at 20 per cent.

Also, the committee retained the CRR on public sector deposits at 75 per cent and the liquidity ratio at 30 per cent. Reacting to the dollarisation of the economy, Emefiele stressed that the currency for doing business in Nigeria remained the naira, adding that it is illegal to transact business in dollars in the country.

“We looking for people who are making demands for foreign currency as payment for services, landlords who are asking for rents in dollars, schools that are asking for school fees in dollars, or those transacting business in dollars. It is illegal in Nigeria and we will like to advise those who are involved in these practices to desist from them because the CBN will in due course come after them,” Emefiele warned.

On the value of the Naira, Emefiele expressed optimism that the currency will pick up after the elections. According to him, at an average of N198 to one dollar, the currently was sufficiently priced given the pressure that have seen in the market due to the drop in crude prices

“I am very optimistic that foreign and domestic INVESTORS are looking at the currency and are optimistic that after the elections confidence will improve because elections will come and go but Nigeria will remain and business will resume and the economy will remain resilience and be on the upward direction.

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