Therefore, the apex bank should not appropriate that role to itself by usurping the functions of deposit money banks.
In any case, CBN intervention funds are offered at interest rates of between five per cent and nine per cent which are less attractive than the likely interest charges under the safety inflation regime. Another disadvantage is that agent deposit money banks often impose under-the-table extra costs. Also, the intervention funds represent an addition to money supply and spike inflation.
For example, at the instance of the World Bank mopped and purportedly sterilised excess liquidity using treasury bills has transformed into the bulk of the national domestic debt.The service cost of the debt alone today exceeds 70 per cent of Federal Government revenue thereby robbing the Federal Government of funds to execute necessary infrastructure projects. The bottom border interest rate of the MPR-in-corridor marks the standing deposit facility rate.
Three, CBN imposed so-called official forex restriction on 42 import items including textiles purportedly to boost domestic production and fight unemployment. Latest NBS data indicate that imports of textiles more than doubled in one year ending March 31, 2021 . The imports were paid for using Nigerian forex. Also, the unemployment level has climbed to 33 per cent.
Nigeria Latest News, Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
World Bank Suggests Ways Of Combating Nigeria’s Rising UnemploymentWith Nigeria’s unemployment rate at over 33 percent, the World Bank has said the country is going through its worst unemployment crisis as it urged the
Read more »
Nigerians face soaring food pricesWATCH: Food prices in Nigeria are rising at the fastest pace in 15 years as the COVID-19 pandemic wreaks havoc in Africa's biggest economy. Nigeria Nigerians
Read more »
Muslim Group Condemns Kidnapping Of StudentsMuslims Students’ Society of Nigeria (MSSN) has said the incessant kidnapping of students in some parts of the country is a strategy to discourage the
Read more »