Emefiele: CBN committed to curbing inflation, interest rates’ reduction - The No.1 Infotainment blog


The No.1 Infotainment blog

The No.1 Infotainment blog

Thursday, 14 September 2017

Emefiele: CBN committed to curbing inflation, interest rates’ reduction

The Governor, Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, has said the apex bank is committed to taming inflation and will continue to explore possible avenues to ensure that interest rates are supportive of domestic production needs. The CBN Governor, who was represented by the Acting Director, Corporate Communications Department, Mr. Isaac Okorafor, stated this at the 24th Seminar for Finance Correspondents and Business Editors holding in Awka, Anambra State.
Mr. Emefiele described the theme of the Seminar: “Import Substitution and the Dynamics of Interest and Exchange Rates in Nigeria,” as apt given the recent collaborative efforts to stimulate real sector production capacity in the country. He also noted that this was significant for the Bank in view of its various interventions meant to provide affordable financing options for critical sectors and to enhance domestic production.

Recalling measures adopted in the past to drive the economy,  boost production, manage and stabilize the exchange rate as well as reduce inflation, Mr. Emefiele said the CBN is consistently devising ingenious approaches to solve peculiar challenges of the Nigerian economy and will continue to learn from the experiences of other countries, particularly developing nations.Mr. Emefiele said that the banking watchdog will continually fine tune measures to ensure and guarantee a stable exchange rate regime. While noting that there is on-going recovery in economic performance, the Governor expressed optimism that improved outcomes will be recorded towards low inflation, bringing down interest rate and guaranteeing exchange rate stability.
The Governor solicited the understanding and support of Nigerians, which he said was what is required at this point of the country’s economic history. Mr. Emefiele enjoined participants to objectively report on the CBN’s efforts towards aligning its monetary policy objectives with broader economic policy, in efforts to generate significant domestic industrial activities that support importsubstitution industrialization.
In a message also delivered by the Acting Director, Corporate Communications Department, Mr. Isaac Okorafor, the Deputy Governor in charge of Corporate Services, Alhaji Suleiman Barau, expressed appreciation to the Finance Correspondents and Business Editors for their support to the CBN in creating awareness and sensitizing Nigerians on the policies and activities of the Central Bank.

They passed the verdict yesterday at Akwa, the Anambra State capital, at the 24th seminar while debating on the theme: “Import substitution and dynamics of interest and exchange rates management in Nigeria.”Alhaji Barau pledged the Bank’s commitment to sustaining the seminar and ensure a robust engagement with the media. Meanwhile, two years down the line since it was announced, entrepreneurs, manufacturers and stakeholders have applauded the CBN over its decision to restrict forex supply to 41 items. Evaluating CBN’s policy, which came into effect on July15, 2016, the team of panelists, which comprised manufacturer, university lecturer, and leading local entrepreneurs, noted that the CBN forex restriction policy protects local manufacturers, making them strong and competitive.
The team of panelists included local manufacturer, Mrs. Yemisi Iranloye, Dr. Uche Uwaleke, Mr. Amadi Ogbebor, Chief Godwin Ekenma and CBN Acting Director (Corporate communication), Isaac Okarafor.
The apex bank, two years ago, in the face of fast depletion of foreign reserves and local currency losing its value to other major international currencies, took a major decision by restricting forex supply to 41 items it felt Nigeria has capacity to produce locally. Some of the items on forex prohibitory list are: rice, toothpick, tomatoes, meat, chicken and furniture, among others.

Contributing to the topic, Uwaleke applauded the CBN for the prompt response taken at the time to reverse the ugly slide in economic fortunes of the country. “I’m happy CBN was prompt in taking the decision and it should be retained for enforcement. If that had not been taken, by now reserves level could have crashed down and the value of naira worse off,” he said. Ekenna urged the Federal Government to enforce quality assurance and standard in works of regulatory agencies saddled with responsibility of standards enforcement.

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