CBN defends monetary policy decisions


The Central Bank Governor Mr. Godwin Emefiele , has said that the apex bank took the best monetary policy option in addressing the current economic challenges facing the country.

He also said that unless Nigerians embrace fully the concept of diversification, the country would not be able to generate enough foreign exchange to cushion the effect of the drop in the value of the naira.

He also said that the inability of the country to increase its stock of foreign exchange, due to the global oil price drop, was the major reason for the persistent decline in the value of the naira against the dollar.

Emefiele who stated this while speaking during an interview on the sidelines of a career conference in Abuja, noted that the Monetary Policy Committee of the CBN could not have taken a better decision in view of the current challenges facing the country.

The event, put together by The Everlasting Arms Parish of the Redeemed Christian Church of God, had as its theme, “Your life, your future — not a laughing matter.”

The apex bank governor who was responding to a question from journalists on the criticism of the CBN policy by eminent Nigerians, including the Governor of Kaduna State, Nasir el-Rufai, said it would be difficult for the apex bank to achieve price stability without the current monetary policy stance.

El-Rufai had last week Wednesday faulted the decision of the Central Bank of Nigeria to increase the Monetary Policy Rate from 12 per cent to 14 per cent.

He had said, “We have a Central Bank that has an MPR at 14 per cent and banks lending at 20 per cent. I have said it before and I will repeat it again, unless the Central Bank and the banking system make a conscious decision to bring the interest rate down, one day it would be legislated.”

Represented at the event by the Deputy Governor, Economic Policy, Mrs. Sarah Alade, the CBN governor said once the objective of price stability was achieved, the economy would begin to experience growth.

Earlier, the governor admonished the youth on the importance of hard work, dedication to excellence and perseverance in achieving one’s goal.

He said by imbibing these qualities, coupled with the requisite skills, they would be able to become great leaders in any area of their endeavours.