CBN increases interest rate to 16.5%

The Monetary Policy Committee of (MPC) of the Central Bank of Nigeria (CBN) has hiked monetary policy rate to 16.5 per cent from 15.5 per cent while all other parameters remained unchanged.

The CBN Governor, Godwin Emefiele, disclosed this at the apex bank’s Monetary Policy Committee monthly meeting in Abuja on Tuesday.

Emefiele also said the new naira notes will now be introduced tomorrow, Wednesday, November 23, as opposed to the earlier date of December 15, 2022.

The CBN governor said expectation is to ensure that by Jan. 31, all current N200, N500 and N1000 denominations are successfully phased out.

According to him, the CBN won’t shift its deadline for all old notes to be returned to commercial banks in exchange for newly designed ones.

Emefiele had on October 26, 2022 said the apex bank will issue redesigned N200, N500, and N1,000 notes, effective December 15, 2022, while the new and existing currencies will remain legal tender and circulate together until January 31, 2023.

However, he made a U-turn on Tuesday, saying the CBN won’t wait till December 15 anymore as the President will unveil the new notes on Wednesday.

The bank chief said, “100 days is enough for any person from any part of Nigeria to deposit his money in the bank and get his money when the new notes are released.

“For information, indeed, we are no longer waiting till December 15th to unveil and begin to release the new notes.

“By the special grace of God, tomorrow, which is the 23rd of November 2022, the President has graciously accepted to unveil the new currencies and the new currencies will be unveiled tomorrow at the Federal Executive Chamber by 10am.”