The officials of the Central Bank of Nigeria (CBN), the International Monetary Fund (IMF) and financial experts, in Lagos, yesterday, differed on the controversial issue of multiple exchange rates and its implications for the economy. The Senior Special Assistant to CBN Governor, Emmanuel Ukeje, said the development has severally been clarified, except that people have chosen to go with misconceptions.He the nation’s apex bank is not practicing multiple exchange rates, but multiple windows due to the country’s peculiar situation. Making the clarification at the Special Policy Dialogue Colloquium, entitled: “Policy Change – The Enabler of Sustainable Growth”, organised by the Financial Derivatives Company, he said that those rates at N345/$ are forward rates, not spot rates, which when delivered in six months period are equivalent to N360 per dollar at spot rates. He said that such moves are arranged to take care of the various sectors that will naturally not be serviced by the
The Central Bank of Nigeria (CBN) directive for banks not to deposit funds above N2 billion at its Standing Deposit Facility (SDF) window will free over N750 billion for loans, it was learnt on Thursday. Commercial banks are expected to deposit excess funds at the CBN daily and earn interests on such funds, The Nation learnt. The guideline, issued on Wednesday, took effect yesterday. It reduced the remunerable daily placement of SDF from N7.5 billion to N2 billion. SDF is the excess reserve funds that banks deposit at the SDF window of the CBN at the end of each business day. The Standing Lending Facility (SLF) is fund borrowed by banks from the apex bank to square up their positions in the market. The SDR attracts interest rate of Monetary Policy Rate (MPR) minus 500 basis points, which is 8.5 per cent per annum up to the limit of N2 billion. Any deposit over and above the maximum will attract zero interest rate. CBN Director Financial Markets Department Angela Sere-Ejemb