Already, N525 billion has been pulled out less than one week after the policy which seeks to tighten money supply, while additional N219 billion is slated to be pulled out next week
Banks' treasury executives said they are preparing their treasury plans for more mop ups of about N300 billion.
The Central Bank Monetary Policy Rate was increased to 12 per cent from 11 per cent while Cash Reserve Requirement was hiked to 22.5 per cent from 20 per cent at its last meeting.
Meanwhile, the International Monetary Fund (IMF) said that it has again cut its growth forecast for Nigeria as the oil exporter faces substantial challenges from low crude prices.
In its annual review of Nigeria's economic situation, the IMF said that gross domestic product growth will slow to 2.3 per cent in 2016 from an estimated 2.7 per cent in 2015.
It added that Nigeria's general government deficit will grow further after doubling to 3.7 per cent of Gross Domestic Product (GDP) last year.
The IMF executive board said Nigeria needed to urgently implement policies to safeguard fiscal sustainability, reduce external imbalances and advance structural reforms that promote more inclusive growth. Click to signup for FREE news updates, latest information and hottest gists everyday
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When I talked about OMO (open market operation) against pushing money into circulation some daft biased English speakers that has nothing to offer in this great country countered it and said I was not informed..now the CBN is adopting my idea and am happy they are coming back to their senses
ReplyDeleteAdopting the Idea of an Anonymous? Abeg make I hear!
DeleteDo u know the implication of that policy .For your information OMO is use to tighten the economy .The economy you want to tighten up is already depressed. We need more money in circulation at this point in time for investment to flow.If there is more money in circulation banks and other money lenders will have enough to lend out to investors.
ReplyDelete