- The Central Bank of Nigeria, CBN, Friday, disclosed that its decision not to undertake a further devaluation of the naira was borne out of the need to safeguard the Nigerian economy from the shocks and negative impact the depreciation will have on the economy.
- Reacting to an article in the Economist Magazine, the CBN in a statement signed by its Director, Corporate Communications, Mr. Ibrahim Mu’azu, maintained that the CBN does not panic and will not take desperate measures to satisfy few misguided interests in the market.
- He said, “Because the Nigerian economy is heavily dependent on imports and the exchange rate pass-through to inflation is high, we believe that this adjustment is optimal at this time.
“Contrary to the article’s argument, adjustments to a sharp decline in supply of US Dollars cannot all be borne by an indeterminate depreciation, without considering the full impact on the Nigerian economy.
- Few decades ago, Nigeria was one of the world’s largest producers of palm oil but today we import nearly 600,000 Metric Tonnes while Indonesia and Malaysia combine to export over 90 percent of global demand.
- Source: Vanguard