The Monetary Policy Committee, MPC, of the Central Bank of Nigeria, CBN, will hold its 247th Meeting in Abuja between today and tomorrow to review effects of the Single Treasury Account policy on banks, among other policy measures.
Sources said the committee is expected to come out with far-reaching policy decisions on the Cash Reserve Ratio, CRR, which was reduced from 31 per cent to 25 per cent in September.
The CBN had also in September announced 30 per cent and 13 per cent for Liquidity Ratio and the Monetary Policy Rate , MPR, respectively, when it assured that the TSA had no negative effects on banks. Since then, the implementation of the TSA had taken tolls on cash available to banks such that some are now reportedly struggling to remain afloat, a situation that could force the MPC to act quickly on how to bring some respite to the sector.
The fall in the prices of crude oil in the international market has left the nation’s economy struggling, with fears that many banks with large exposures to the oil sector could suffer large-scale non-performing loans in the short to medium terms.
Another issue that would likely come under review is the domiciliary accounts policy where much foreign currencies are said to have been trapped. It was gathered that the CBN Governor, Mr. Godwin Emefiele, has come under immense pressure to lift the ban on the operation of domicilary accounts.