* Eight banks reach recapitalization target
The Central Bank of Nigeria (CBN) has maintained the current Monetary Policy Rate (MPR) of 27.5 percent with all policy parameters.
The Governor of CBN, Mr. Olayemi Cardoso, disclosed this at the MPC briefing in Abuja.
Consequently, the asymmetric corridor was retained at +500/-100 basis points around the MPR, leaving the Cash Reserve Ratio at 50 per cent for Deposit Money Banks and a general Liquidity Ratio of 30 percent.
Cardoso explained that the decision to maintain the current MPR was premised on the need to continue to ensure the ongoing disinflation while vigorously ensuring declining prices.
The CBN boss revealed that as of July 18, the nation’s foreign reserve stood at $40.1 billion, which could provide import cover of nine and a half months.
He also disclosed that eight banks have achieved the new recapitalisation requirements.
The governor said the monetary and fiscal authorities would continue to work together to reduce the nation’s inflation rate to a single digit.
He added that the Liquidity Ratio remains at 30 per cent, while the Asymmetric Corridor is retained at +500/-100 basis points around the MPR.