An Economist, Mr Rasheed Yusuf, has disclosed that the country’s inflation figure will come down to single digit if the CBN implements its directive to commercial banks to maintain a minimum Loan to Deposit Ratio (LDR) of 60 per cent.
Yusuf, the Chief Executive Officer of Trust Yield Securities in Lagos, made the assertion in an interview with newsmen in Lagos on Thursday.
He said the directive, whose implementation will begin in October, would curb inflation and boost productivity in the real sector.
Yusuf was reacting to the Consumer Price Index (CPI) which dropped to 11.22 per cent (year-on-year) in June from 11.40 per cent in May.
According to him, the apex bank should implement the sanctions if any bank flouts the new mandatory loan to deposit ratio because its enforcement would transform domestic businesses for the better.
CBN had threatened to sanction banks with cash reserve penalty should they defaulted.
Yusuf also urged the CBN to sustain the multiple windows for accessing foreign exchange to aid businesses.
He said these interventions would ensure the survival of businesses regardless of those sabotaging the economy by dumping imported goods in the country.
The economist said that the recent CBN policy to support the creative industry would also check imported inflation.
“The CBN N500 million with nine per cent interest rate bailout to the sector will boost domestic production in the creative sector.
“This is because a sizeable percentage of foreign exchange is being used for the importation of clothing, software and making of movies,” he said.