ADVERTISEMENTThat the governor of the Central Bank of Nigeria (CBN) used the platform of the bank’s recent policy committee meeting to announce what should have been but an operational change in the working of the nation’s financial services space shows how limit-bound traditional monetary policy instruments have become. After almost 2 years of rising steadily, […]
That the governor of the Central Bank of Nigeria used the platform of the bank’s recent policy committee meeting to announce what should have been but an operational change in the working of the nation’s financial services space shows how limit-bound traditional monetary policy instruments have become. After almost 2 years of rising steadily, we can no longer make the case that inflation is transitory. Yet, the CBN’s monetary policy rate long failed as a tool for bringing about price stability.
Notwithstanding the furore that this has generated amongst our talking-heads, at issue here is neither BDCs nor DMBs. For, in the end, these are only routes to market in our current foreign exchange trading system. In any market, even for currency, once supply of the good or service traded cannot meet demand, and the authorities insist on a price cap , rationing, queues, and activities designed to game the system come into play.
The supply of foreign exchange continues to undershoot demand. The regulator will not lift the price cap in the market. All who have access at the official rate may profitably sell at the black market.
Nigeria Latest News, Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Emmanuel Onyebeke: Stoppage of sales of FOREX to BDCs - Another courageous policy by CBNThe latest Central Bank of Nigeria's (CBN) decision to stop the sale of FOREX to Bureau De Change (BDC) operators due to the reported abuses that have
Read more »
Emmanuel Onyebeke: Stoppage of sales of FOREX to BDCs - Another courageous policy by CBNThe latest Central Bank of Nigeria's (CBN) decision to stop the sale of FOREX to Bureau De Change (BDC) operators due to the reported abuses that have
Read more »
National Diaspora Day: Enugu Diasporans celebrate Gov. Ugwuanyi, school children in styleEnugu State Diaspora Community has commended Governor Ifeanyi Ugwuanyi for providing enabling environment and mobilizing indigenes of the state resident abroad for direct foreign investments (FDI) in the state.
Read more »
Ugwuanyi inaugurates Henry Nwosu as new Enugu Sports Club ChairmanGov Ifeanyi Ugwuanyi of Enugu State on Saturday inaugurated the newly elected Chairman of the Enugu Sports Club, Mr Henry Nwosu.
Read more »
Why hoodlums attacked Ibadan radio station - PoliceThe windscreens of four vehicles parked within the premises were broken, along with the glass door at the entrance of the ..., police said.
Read more »
PDP/APC tango over Akeredolu’s olive branchThe PDP in Ondo State has charged Gov. Rotimi Akeredolu to stop grandstanding and the clicking of wine glasses over his Supreme Court victory.
Read more »