Dr Samuel Nzekwe, a former president of the Association of National Accountants of Nigeria(ANAN) says the country’s economy will get a boost if the CBN Monetary Policy Committee agrees to reduce monetary instruments.
Nzekwe said this in an interview with the News Agency of Nigeria(NAN) in Ota, Ogun, on Monday.
NAN reports that the meeting of the Monetary Policy Committee of CBN is scheduled to hold on Tuesday to deliberate on key monetary instruments like Cash Reserve Ratio, Liquidity Ratio and Interest Rate.
The former ANAN boss said it was imperative for the Monetary Policy Committee to urgently consider a reduction in the monetary instruments to galvanise the economy.
“There is the need to reduce interest rate because investors cannot successfully do business under such high interest rate.
” Such interest rates charged by banks are harsh and are not favourable to investors’ businesses to thrive, “he said.
Nzekwe urged the committee to review downward the Cash Reserve Ratio for banks so that they could have ready funds to lend to their customers.
He said that banks would be able to perform their financial intermediatory roles well with a reduction in the Cash Reserve Ratio.
Nzekwe opined that a reduction in the monetary instruments would bring about improved economic activities which would ultimately boost economic growth.