Naira Devaluation Aimed At Curbing Frivolous Dollar Demand

The Central Bank of Nigeria (CBN) on Wednesday stated that its decision to devalue the naira, increase the Monetary Policy Rate (MPR) and private sector Cash Reserve Ratio (CRR) on Tuesday will help curb what it described as the frivolous demand for the dollar.

CBN Deputy Governor, Corporate Services Directorate, Mr. Adebayo Adelabu said this when members of the House of Representatives Committee on Banking and Currency visited the central bank’s Lagos office on oversight duty.

According to him, the monetary policy measures would discourage banks from lending to unproductive sectors of the economy, insisting that banks should lend to critical and desirable sectors of the economy in order to stimulate growth.



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