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CBN Raises Naira Savings Interest Rate to 30%

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The negotiated minimum interest rate due on local currency savings deposits has been increased by the Central Bank of Nigeria (CBN) to 30% of the Monetary Policy Rate (MPR).

CBN Raises Naira Savings Interest Rate to 30%

CBN Raises Naira Savings Interest Rate to 30%

The apex bank, in a letter addressed to all banks and titled, “Review of Interest Rate on Savings Deposits”, which was dated August 15, 2022 and signed CBN Director, Banking Supervision Department, Mr. Haruna Mustafa, stated that it became necessary to review the rate back to 30 per cent of following the return of normalcy in the economy and considering the prevailing macroeconomic conditions.

The CBN stated that the new circular would go into effect on August 1, 2022, and that it would replace any prior correspondence on the issue.

However, the CBN noted with satisfaction the declining trends in market rates in the banking sector following the implementation of policies aimed at stimulating credit flows to the real sector, among other things, when it announced the reduction of the minimum interest rate payable on local currency savings deposits to 10% of last year.

As a result, the apex bank reviewed interest payable on savings deposits as provided in its Guide to Charges by Banks, Other Financial and Non-Financial Institutions issued in December 2019.

Consequently, the interest rate on local currency savings deposits was reduced to 10 per cent of MPR.

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