Sanusi Criticizes CBN’s Forex Regulations

forexNigeria’s former Central Bank Governor and now Emir of Kano, Sanusi Lamido, believes the country’s current exchange rate policies are doomed to fail.

In an interview with the London-based Financial Times, the Emir of Kano said that President Buhari’s endorsement of the Central Bank currency policies risks undermining the progress recorded in the fight against Boko Haram in the northeast and efforts aimed at tackling corruption.

The former Central Bank boss explained that Buhari’s government does not have the reserves to keep the naira-dollar rate at its official level.

Nigeria’s currency reserves presently stands at some 28.2 billion U.S. Dollars, covering far less than the standard 11 months import cover.

President Buhari has resisted the devaluation of the naira and had stated his support of the currency restrictions on 41 imported items, but says the Central Bank is expected to begin the easing of forex restrictions in the course of 2016.

 

CBN Raises Concerns Over Economy’s Partial Dollarisation

CBN Governor, Mr Godwin Emefiele
CBN Governor, Mr Godwin Emefiele

The Central Bank of Nigeria (CBN) Governor, Mr Godwin Emefiele, has raised concerns over the partial dollarisation of the nation’s currency and called on commercial banks in the country to take appropriate measures to check the trend.

Responding to questions from reporters after the Monetary Policy Committee meeting in Abuja, Mr Emefiele said that the apex bank may also be left with no option than to clamp down on the activities of Nigerians who insist on doing transactions with foreign currencies.

He, however, expressed optimism that the naira would rebound after the elections.

Meanwhile, the Monetary Policy Committee meeting left the interest rate unchanged at 13% while ‎liquidity ratio was pegged at 30%.