CRR may hits 100 per cent says the Bankers’ Committee

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CBN corporate office

 From Benjamin a ameh, Lagos

 The crisis in Iran as well as the impact of the tapering and investment outflow from Nigeria was major factors that led to the indirect monetary tightening measure.

Speaking during the media briefing at the end of the Bankers’ Committee meeting, Tuesday in Lagos, the Chief Executive Officer, First Bank of Nigeria Limited, Mr. Bisi Onasanya while responding to questions on the recent 75 per cent Cash Reserve Ratio (CRR) imposed on public sector deposits by the Monetary Policy Committee (MPC), said the resolution of the crisis in Iran as well as the impact of the tapering and investment outflow from Nigeria, were major factors that led to the indirect monetary tightening measure.

Furthermore, Onasanya disclosed that they were informed during the committee meeting that the CRR may further hike to 100 per cent if no improvement in foreign exchange earnings.

In his words, “once you move from 50 per cent to 75 per cent, there is only a limit to how far you can go and the worst case scenario is to move to 100 per cent. The measure was taken in order to ensure that we continue to address the exchange rate problem in Nigeria. We also agreed that there is a need to do a lot more to ensure that there is accretion to external reserves as a basis for defending the currency which is a major focus of this regime.

There is no country that will just allow its exchange rate to be left and not managed. The mere fact that those actions have been taken also indicates the fact that the central bank is willing to do everything within its power to ensure that the currency is not devalued.”

Using External Reserves to defending the Naira currency; mr Oguchukwu Okorafor, the Deputy Director, CBN, in charge Corporate Affairs, stated that CBN never at time said that it can no longer defending Naira and therefore, cautions all financial journalists to have interest of the country first, before casting any headline and story together.

The cashless policy to covers all states in the country as from July 1, 2014, the Head, Shared Services, CBN, Mr. Chidi Umeano, said the decision was taken as a result of the success recorded in states where the policy had been implemented.

The cashless policy was initially introduced in Lagos in 2012, later, extended to Anambra, Abia, Kano, Ogun, and Rivers states as well as the Federal Capital Territory last July.

Umeano further noted that decision to extend the policy to other states, was reached during the meeting that the cashless initiative would now be deployed nationwide.  From the success we have recorded in those areas, we have now decided as an industry to move it to other states in the country, he affirmed.

“Therefore, by July 1, we are going live in all the states of the federation. As you well know, this is a critical part of the payment system modernisation and the success registered so far has been very impressive.”

Umeano reiterated that statistics have shown that there been a significant improvement in electronic banking channels while revealed the daily value of transactions via Nigerian Electronic Fund Transfer worth N123 billion and Point of Sale (PoS) stood at N50 million.

On financial inclusion, the Deputy Managing Director, Guaranty Trust Bank Plc, Mrs. Cathy Echeozo said the committee agreed that on March 13th, the CBN governor will lead others officials of CBN and banks chief executive to go round schools to encourage the need for every student to have a bank account.

Also speaking at the briefing, the Chief Executive Officer, Access Bank Plc, Mr. Herbert Wigwe, revealed that the Bankers’ Committee would launch a biometric solution by Friday added that the committee over the years, has been working on improving Know-Your-Customers (KYC) in the industry which meant to fight money laundering and encourage consumer lending.

“Hopefully with launch a biometric solution, all the banks would be able to strengthen their KYC and to combat money laundering and of course prevent fraud.”

It was also revealed during the briefing that Microfinance Bank Operators in Nigeria have been given matching order to raise capital or find merger partner to avoid liquidation case which expiring date was not disclosed.


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