Home Banking & Finance Naira redesign policy was too harsh, will be reviewed — President Tinubu

Naira redesign policy was too harsh, will be reviewed — President Tinubu

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President Bola Tinubu has expressed displeasure with the current interest rate, saying that the Central Bank of Nigeria’s (CBN) 18.5 per cent rate is too high.

In his inauguration address as the 16th president of Nigeria, Mr Tinubu frowned at and referred to the interest rate as “anti-people and anti-business.”

According to Mr Tinubu, lowering the interest rate will promote investment.

“Monetary policy needs thorough house cleaning. The Central Bank must work towards a unified exchange rate. This will direct funds away from arbitrage into meaningful investment in the plant, equipment and jobs that power the real economy,” Mr Tinubu said.

“Interest rates need to be reduced to increase investment and consumer purchasing in ways that sustain the economy at a higher level,” he added.

In an effort to “tame rising inflation,” the apex bank increased the monetary policy rate (MPR) from 18 per cent to 18.5 per cent last week.

The MPR serves as the foundational interest rate for an economy, upon which all other interest rates are based.

The president also said that his government was going to revisit the naira redesign policy of the outgone regime of former president Muhammadu Buhari.

“Whatever merits it had in concept, the currency swap was too harshly applied by the CBN given the number of unbanked Nigerians, the policy shall be reviewed. In the meantime, my administration will treat both currencies as legal tender,” Mr Tinubu said.

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