CBN charged N6.9 trillion from banks last week, the consequence of the MPC choice to expand CRR to 32.5%. This implies 33% of all bank stores presently cleaned with CBN. It’s one of the most horrendously terrible MPC choices I’ve at any point seen, and has just slipped by everyone’s notice.
In a nation battling for development, CBN’s CRR climb will just kill any sort of loaning, and likewise, development. Also, the most terrible part is it won’t control expansion, which is currently plainly more expense push, than request pull.
So loaning will slow down and rates will go up. Presently think about how organizations will answer the higher interest installment? Precisely; they will increment costs, which will just deteriorate the issue CBN is attempting to tackle.