The Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, has said that the resuts have justified the flexible exchange rate implemented by the apex bank. These results, he said, include increased transparency in the forex market, an estimated cleared $4 billion backlog of forex demand, reduced arbitrage and speculative opportunities and a more predictable structure for businesses to priorities their forex demand.
In addition, he added ‘This policy has led to a gradual but steady inflow of new FX into the market. All of these have largely met the bank’s expectations in the short term. We believe that these benefits will become magnified as the policy’s sustenance improves the credibility of the CBN and investors trust us more to return more forcefully as active participants in Nigeria’s FX market.’
Also speaking on present initiatives to stabilise the economy, Emefiele said the bank will pursue price stability as an anchor for economic growth as well as attract foreign investors as the country battles recession and rising inflation.
“The CBN does not reckon that curbing inflation, attracting foreign investors and supporting growth are mutually exclusive objectives. Rather, the monetary policy committee’s decision reflects the (central bank’s) prioritization of its core mandate of pursuing price stability as an anchor and enabler for economic growth.”Emefiele is quoted as saying.
The CBN Governor also said that the new circular regarding the appointment of CCOs and ECOs by commerial banks must be taken seriously. He said “The CBN will hold the ECO responsible and accountable for any breach of any extant regulation in the bank. For avoidance of doubt, the CBN shall suspend/dismiss any ECO and CCO found wanting in the discharge of his/her responsibility,” repeating that the ECO must be at the level of Executive Director while th CCO should be at the level of General Manager.