Nigeria’s embattled Central Bank Governor Godwin Emefiele, shocked markets with a surprise rate hike this afternoon.
We have enumerated severally our belief at Nairametrics that Emefiele should resign or be fired for destroying the credibility of the CBN.
In another bizarre move during questioning after the MPC press briefings, Emefiele said the major way to increase FX supplies for Nigerian Businesses hit by dollar shortages was to hope for a rise in oil prices.
According to Emefiele:
“We are hoping that with time we can improve supply of dollars as oil prices rise. We will come up with something acceptable in due course regarding a new Foriegn Exchange policy.”
Of course the CBN has just reversed course by tightening (CRR to 22.5%, MPR to 12 %) after easing monetary policy in November an admission that its policies are not working like we have been pointing out.
Now the CBN is also admitting it has no plan except hunker down while the economy burns and hope all prices rise!!