The Central Bank of Nigeria will not be discouraged by the many attacks on some of its tightened monetary policy moves aimed at addressing the fundamental challenges of the economy, the governor of the bank, Mr Godwin Emefiele, has said.
Speaking yesterday at the 40th anniversary and convocation lecture of the University of Maiduguri, Emefiele said in recent times, the bank was under attack because of some of the proactive policy actions taken by “disparagers who may not genuinely have the interest of Nigeria at heart”.
Some of the measures mentioned by the governor are the further tightened monetary policy by increasing Monetary Policy Rate (MPR) and Cash Reserve Requirement (CRR); Reclassified items in Retail Dutch Action System (RDAS) window and moved to interbank; Review of operators’ Net Open Position; A 72-hour limit placed on FX utilisation; and closing of the highly-subsidized RDAS.
Others are the introduction of a two-way order-based quote system and prohibiting 41 commodities from access to Forex in the market.
Speaking through his deputy, Malam Suleiman Barau, the governor believed that “these actions are broadly required to set our economy on the path of development in the medium to long-term.”
“The Nigerian economy must flourish! We must employ every indispensable means — conventional or otherwise to achieve our purpose. It is apparent that we as a people cannot continue to depend on other countries for things that can easily be produced locally.”
Emefiele said with the drop in oil prices, Nigeria has seen a US$1.36 billion fall in the monthly average inflow of Forex. “While dollar inflows have reduced considerably, demand has not following the sustained activities of speculators and rent-seekers which continue to intensify exchange market pressure.
He said at the same time, monthly average import bill has risen astronomically from N12.4 billion in 2005 to N102 billion as of September 2015.
Source: Daily Trust