The Central Bank and operators in the Nigerian Financial Market have argued that the interventions of the CBN does not encourage laxity and will not expose the economy to volatility.
The position was made known on Thursday at a meeting of risk managers association of Nigeria in Lagos, in reaction to the IMF warning on potential risks to the country’s economic growth this year.
Explaining the impacts of the CBN interventions, the leadership of the association as well as the risk manager of the Central Bank, Ms Folakemi Fatogbe, said the financial regulator will continue to reduce the risks that may arise from the economic recovery.
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The Governor of Central Bank Nigeria (CBN), Mr Godwin Emefiele had earlier warned that the positive economic growth recorded in the second quarter of 2017 is “very fragile”.
He added that Africa’s largest economy could slip back into a “protracted recession” if all necessary fiscal steps are not “activated immediately”.
He also said the apex bank was not ready to reduce the country’s interest rates at the moment due to the inflation rate, which is at a high of 16 per cent.
He, however, stressed that efforts are being made to improve the nation’s foreign exchange market, the agricultural and manufacturing sectors.
