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Critics of Monetary Policy Don’t Mean Well for Nigeria, Says CBN

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By Baron Ike

 

The Central Bank of Nigeria (CBN) has said that those criticizing its monetary policies do not mean well for the country.

Acting Director, Corporate Communications of CBN,, Isaac Okorafor, issued the warning in a statement titled, “Nigeria’s current economic situation: Our case.”

Okoroafor  said  while the apex bank respects the rights of every Nigerian or stakeholder to their respective views, it finds it  misleading that  certain interests  have remained  persistent in  their move to misinform the  larger public, discrediting  genuine efforts  at managing the economy, and creating  public distrust and panic within the financial system.

His words: “Self-centered individuals, who have failed to assail our patriotic position, have resorted to the sponsorship of serial propaganda to misinform and mislead the public on the objectives of our policies.

“Intelligence  reports at the  disposal of the  bank reveal the  involvement of  some unpatriotic  elements funding the push to have  the CBN and the Federal  Government reverse its  FOREX policy,  which is aimed  at conserving  foreign exchange,  stimulating agriculture and manufacturing and also promoting exports.”

Okoroafor explained that the present  economic  challenges were worsened by the nation’s past practice of frittering away huge earnings made from oil sales over the years,pointing out that the CBN’s decisions on FOREX management were prompted by the challenge  posed by the  level of depletion  of the country’s  reserves, arising  from issues such as a drastic reduction in oil earnings, speculative attacks and round tripping.

He said pressures on the country’s foreign reserves have persisted due to a huge fall in the monthly foreign earnings, which he said, fell from over $3.2 billion sometime in  2013 to below  $500 million per  month sometime  in 2016, when  the demand for the US dollar, particularly by importers, continued to rise.

Okoroafor said despite the challenges, the apex bank has ensured that it meets the genuine demand of importers to pay for eligible imports and other transactions within available resources.

He stressed that the bank has continued to ensure that there is liquidity and transparency in the FOREX market.

His words: “For the avoidance of doubt, the Central Bank of Nigeria (CBN) continues to:

1.Ensure that inflation remains within manageable limits;

2.Intervene in critical sectors of the economy, through injection of much-needed capital to promote growth and employment;

iii.   Promote export-driven industrialisation;

1.Provide access to credit to farmers and small-scale entrepreneurs at single digit rates, to create wealth;

1.Protect the interest of bank customers in Nigeria; and above all,

2.Ensure that the masses of our country’s low income earners are protected from the vagaries of high naira depreciation.”

“Despite our  positive efforts,  some persons and groups have  chosen to play  to the gallery by focusing on negativity that does the country no good,” he said.

He assured that the bank would continue to ensure monetary and price stability as well as maintain external reserves to safeguard the international value of the Naira.

Okoroafor advised Nigerians to be more patriotic and contribute to a viable Nigerian economy; rather than engage in acts capable of undermining the efforts being made by government at moving the country out of the current economic situation.

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