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ABCON canvasses for reduction in interest rates, others

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6 years ago

April 3, 2018

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As the Monetary Policy Committee of the Central Bank of Nigeria prepares for its first meeting in 2018, President of the Association of Bureau D’ Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadebe, has advised the CBN to reduce its Monetary Policy Ratio (MPR).

He said that lowering the MPR and other rates by the CBN Monetary Policy Committee (MPC) was critical to revamping the productive sectors of the economy.

Last week, following the Senate’s confirmation of the CBN’s appointees to replace members whose tenure had elapsed, the Governor of the apex bank, Dr. Godwin Emefiele had given an indication of MPC meeting early this month, possible between tomorrow April 4^th and 5^th.

In its last meeting for the year ended December 31st, 2017, the apex bank had retained the benchmark interest rate at 14 per cent alongside other monetary policy rates citing inflationary pressure and a fragile post-recession economy.

The nation’s inflation rate has, however, dropped for the 12th consecutive times to 14.33 per cent, according to the National Bureau of Statistics.

In his submission in an interview, Gwadabe said that rates cut would stimulate activities in small and medium enterprises, manufacturing, export and service sectors, adding that “eradication of the multiple exchange rates would lead to a more stable and sustainable foreign exchange regime”.

“Small businesses would leverage on the rates cut to seek funding for their businesses to make them globally competitive with attendant enhanced productivity.

Besides, Gwadabe averred that “With the apparent success so far observed from the rice end of the CBN’s Anchor Borrowers Programme (ABP), it is important to extend same to cocoa growers in the South west and palm oil producers in the South east.

He argued that “with the needed economic and financial powers, farmers in these regions would raise their production levels and export more of their products”.

It would be recalled that the CBN had failed to hold MPC meeting since this year due to delays in confirming new appointees by the Senate to replace members whose tenure had elapsed.

However, the Senate last week, considered the nominees, meaning that the MPC can now form a quorum to meet.