• Wednesday, June 19, 2024
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Introduce more friendly economic policies, experts tell CBN

CBN’s new FX rules to shore-up dollar supply, stabilise naira

Some financial experts on Saturday urged the Central Bank of Nigeria (CBN) to pursue more friendly economic policies in 2015 to ensure growth and development of all the sectors of economy.

The experts said that some CBN tight monetary policies in 2014 were in the interest of economic growth but might affect banks’ financial results and dividend declaration.

The apex bank in January, 2014 raised the Cash Reserve Requirement (CRR) on public sector deposits from 50 per cent to 70 per cent.

The CRR is a monetary policy tool used to set the minimum deposits commercial banks must keep as reserves.

CRR is usually applied to influence borrowing and interest rates by changing the amount of money at banks’ disposal to create loans.

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Okechukwu Unegbu, a former President, Chattered Institute of Bankers of Nigeria (CIBN), said that the monetary policy led to liquidity squeeze in the banking industry.

Unegbu claimed that banks relied more on hidden charges in 2014 for survival.

He said that friendly economic policies in 2015 would help the financial and other sectors of the Nigerian economy to grow.

Godwin Anono, Chairman, Nigeria Professional Shareholders’ Association, told NAN that shareholders desired policies that would boost banks’ financial results and dividends declaration.

He hoped that many sectors of the economy would improve after the general elections.

Anono also expressed confidence that an end to insurgency in Nigeria would improve economic activities.

(NAN)