CBN MPC’s nominees canvass ways out of forex crisis

Published: February 21, 2024

Nominees into the Monetary Policy Committee ( MPC ) of the Central Bank of Nigeria ( CBN) on Wednesday assured the Senate that the subsisting foreign exchange volatility would soon be over, given appropriate precautionary measures.

Six of the nominees, in their presentations before the Senate Committee on Banking, Insurance, and Other Financial Institutions, maintained that the financial and food crises currently plaguing the country were not beyond redemption.

The nominees were screened and cleared as their names were sent last week to the Red Chamber by President Bola Ahmed Tinubu for confirmation into the Monetary Policy Committee ( MPC ) of the Central Bank of Nigeria ( CBN).

Checks revealed that the MPC inaugural meeting has been fixed for next Monday.

In his presentation, Director-General of the Securities and Exchange Commission ( SEC), Alhaji Lamido Yuguda, noted that the naira has lost its value but assured that the MPC would collaborate with other stakeholders to ensure its stability.

He said, “The value of any currency is measured by the goods and services that it can buy. The naira, as it is today, does not possess that value sufficiently, which is being critically looked into.”

The Lagos State nominee said the exchange rate should be addressed frontally, as against the narrative against inflation.

“A more proactive way of addressing the Naira volatility problem at hand is for the CBN to target the exchange rate itself and not inflation.

“The inflation the country is facing now is largely that of food inflation, which is beyond CBN but for the entire country.

“Production and distribution of food commodities across the country would help to reduce food inflation, while the aggressive target of Exchange rate would help to stabilise the Naira with a required increase in productivity.”

Imo State, Mrs Aku Odinkemelu, insisted that productivity was the key to arresting the volatility of the naira and food inflation.

Other nominees who were cleared included Professor Murtala Sagagi from Kano State, Bamidele Amoo from Kwara State, and Aloysius Uche Ordu, who worked with the World Bank and Africa Development Bank for 30 years at different times.

In his closing remarks, the Senator representing Lagos East and Chairman of the Committee, Senator Tokunbo Abiru, reminded the nominees that their screening was done ahead of the MPC meeting slated for next Monday week by the Apex Bank.

He said what Nigerians expect to come after the meeting is solutions to the rising inflation rate, worsening Naira volatility in the foreign exchange market, and how to stimulate growth in the economy.

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