CBN Apex bank to inject more money into the economy

The apex banks’ new move to inject liquidity into the economy is coming on the heels of extensive criticism of the banks management of the country’s economy.

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Godwin Emefiele play

CBN Governor, Godwin Emefiele

(today)
CBN Building, Abuja, FCT. play

CBN Building, Abuja, FCT.

(google)
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In a bid to stave off recession in Africa’s biggest economy, the Central Bank of Nigeria loosened monetary policy yesterday by injecting liquidity into banks.

The interbank market is also short on liquidity since authorities forced commercial banks to move government revenue to a Treasury Single Account (TSA) at the Central Bank, part of a drive by President Muhammadu Buhari’s war against graft.

The apex banks’ new move to inject liquidity into the economy is coming on the heels of extensive criticism of the banks management of the country’s economy.

The CBN responded yesterday by keeping its benchmark interest rate on hold at 13 percent but it cut the bank reserve ratio to 25 percent from 31 percent.

READ: CBN limits ATM withdrawals to N60,000, $300 per day

"Having seen two consecutive quarters of slow growth, the bankers committee recognized that the economy could slip into recession in 2016 if proactive steps were not taken to revive growth in key sectors of the economy," CBN Governor Godwin Emefiele said yesterday, while speaking to reporters in Abuja.

Emefiele said the CBN would stick to foreign currency curbs to boost local production of essential food items.

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