In order to combat inflation, the Central Bank of Nigeria (CBN) has increased the Monetary Policy Rate (MPR) from 16.5% to 17.5%.
This was stated by CBN Governor Godwin Emefiele on Tuesday in Abuja, following a Monetary Policy Committee (MPC) meeting.
The MPC increased the monetary policy rate by 100 basis points to 17.5% and maintained the +100/-700 basis point asymmetric corridor around the MPR.
The MPC maintained the Cash Reserve Ratio (CRR) at 32.5% while maintaining the liquidity ratio at 30%.
The CBN also stated that the January 31, 2023 expiration date for the former N200, N500, and N1,000 notes remained unchanged.
The CBN revealed its intention to redesign the three banknotes on October 26, 2022. On November 23, 2022, President Muhammadu Buhari revealed the revised N200, N500, and N1,000 notes, while the central bank set a January 31, 2023, expiration date for the validity of the old notes.
The CBN also established weekly withdrawal limitations of N500,000 for individuals and N5 million for businesses.
As the deadline of January 31, 2023 approaches, many Nigerians are concerned about the delayed rollout of the three new naira notes, but the central bank has reaffirmed that the date would remain unchanged.
In order to increase circulation, the CBN also recently instructed commercial banks to cease over-the-counter payment of the new notes and fill their Automated Teller Machines (ATMs) with the redesigned naira notes.
Additionally, the central bank created a statewide cash swap scheme to allow residents in unbanked areas to exchange their old currency for new currency before the deadline.
However, the House of Representatives, the Senate, and the Nigeria Governors’ Forum have requested that the CBN extend the deadline so that more Nigerians are able to get the new currency.