In an effort to control inflation, the Central Bank of Nigeria (CBN) increased the Monetary Policy Rate (MPR), which measures interest rates, from 16.5% to 17.5 percent.
This was revealed by CBN Governor Godwin Emefiele following the Monetary Policy Committee (MPC) meeting of the top bank on Tuesday in Abuja.
The MPC maintained the asymmetric corridor around the monetary policy rate at +100/-700 basis points while increasing the monetary policy rate by 100 basis points to 17.5%.
While maintaining a 30% liquidity ratio, the MPC kept the cash reserve ratio (CRR) at 32.5%.
The previous N200, N500, and N1,000 notes will continue to be valid until January 31, 2023, according to the CBN.
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; the apex bank set a deadline for the old notes’ validity of January 31.
Additionally, the CBN set weekly cash withdrawal caps of N500,000 for private persons and N5,000,000 for corporate businesses.
Many Nigerians have expressed alarm about the three new naira notes’ delayed adoption as the January 31st deadline draws near, but the apex bank has reaffirmed that the deadline still stands.
In order to increase circulation, the CBN recently ordered commercial banks to stop accepting payments for the new notes over the counter and fill their Automated Teller Machines (ATMs).
To help people in unbanked areas exchange their old notes for new ones in time for the deadline, the apex bank also started a cash swap program that is available nationally.