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Nigeriaâs foreign reserves record the biggest drop in May 2021 to $34.2 billion. Investment banking analysts said Naira remains overvalued despite the unification of the Central Bankâs (CBN) official and autonomous foreign exchange (NAFEX) rates.
The Nigerian local currency has been struggling to retain value amidst scarce foreign currency inflows into the domestic economy. In a new report, investment banking experts at Chapel Hill Denham Limited said they see room for rates adjustment though not certain about timing.
The investment stated that despite the improved liquidity at the Investors and Exporters window, naira for dollar rate closed flat across the varying segments last week. Specifically, analysts said rates at the Investors and Exporters window and the central bankâs secondary market intervention sales window closed flat at N412 and N380.7 respectively, noted also spike in arbitrage activities in the FX market.
The Monetary Policy Committee of the Bank of Ghana has, in a rather surprise turn of events, cut the monetary policy rate by a 100-basis points, against
CBN’s funding interventions prop GDP numbers
On
By Emeka Anaeto, Business Editor
The Central Bank of Nigeria, CBN, is set to sustain the positive developments in the Nigerian economic growth performance amidst the threats of stagflation.
Governor of CBN, Godwin Emefiele, who gave this hint at the last Monetary Policy Committee Meeting, MPC, of the apex bank earlier this week, also indicated that it’s pro-growth policy strategy would be sustained despite the inflationary pressures.
The pro-growth strategy of the apex bank entailed expansionary monetary policy which encouraged supply of capital to the economy especially the real sector.
The apex bank had, at the wake of the COVID-19 pandemic established a battery of intervention financial facilities to spur economic activities against the adverse impact of the pandemic which had forced Nigeria’s economy into recession in the third quarter of 2020 after two consecutive quarters of negative growth.