MPC retains MPR at 11.5%, CRR, others remain unchanged

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The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN), has voted unanimously to retain the Monetary Policy Rate (MPR) at 11.5%.

This was disclosed by the CBN Governor, Godwin Emefiele while reading the communique at the end of the MPC meeting on Tuesday 25th May 2021.

The committee also maintained other parameters, including the asymmetric corridor of +100/-700 basis points around the MPR, CRR was retained at 27.5%, while Liquidity Ratio was also kept at 30%

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Meanwhile, the CBN has officially added the NAFEX exchange rate on its website.

The update made on Tuesday morning shows Naira is currently priced at N410.25/$1 with NAFEX rate indicated. This also means that for official transactions, Nigeria will be adopting the NAFEX rates.

The NAFEX which is an acronym for the Nigerian Autonomous Foreign Exchange Rate Fixing Methodology was introduced by the current CBN management in 2017, and is the official rate for exporters, investors, and purchasers of forex and rates. It is largely market-driven.

There is also Small and Medium Enterprises Equity Investment scheme (SMEIS) window where forex is sold to importers, and the Bureau De Change (BDC) window where forex is sold to retailers.

The unofficial window is the parallel market which is also called the black market.