Acting CBN governor, Alade, reassures on monetary policy

 WITH the recent removable of Sanusi Lamido Sanusi from office as the Governor of the apex bank, the Central Bank of Nigeria (CBN) has been said not to affect the nation’s monetary policy direction, according to the acting CBN, Dr. (Mrs) Sarah Alade.
Briefing newsmen recently, she noted that following the directive by the President of the Federal Republic of Nigeria, Dr. Goodluck Ebele Jonathan, that she should take charge of the affairs of the Central Bank of Nigeria, as the Acting Governor, there is no cause for alarm.
“I wish to use this opportunity to reassure all our stakeholders including the international community that the recent changes at the CBN will not in any way affect the monetary policy direction and pursuit of the Bank’s primary mandate of maintaining price and financial system stability,” she stated in a press statement made available to DigitalSENSE Business News.
Mrs. Alade was unequivocal that the Nigerian economy has remained strong, sound and resilient over time.
She pointed out that available data from the National Bureau of Statistics indicated that inflation rate was 8.00 per cent in January 2014 and indeed, is important to draw attention to the fact that inflation rate has remained within single digit in the last 13 months.
Similarly, she said, the domestic economy remained robust with a growth rate of 6.87 per cent in 2013, whereas the exchange rate has also remained generally stable.
The Bank, Mrs. Alade reiterated, is committed to sustaining these achievements through the use of appropriate monetary policy tools to ensure price and financial system stability.
“Let me reassure stakeholders that the Central Bank of Nigeria will continue to intervene in the interbank foreign exchange market to ensure the stability of the exchange rate of the naira and preserve the value of the domestic currency,” she declared at the inaugural press meeting.
Equally, she reassured of the management of CBN commitment to monetary and price stability and the smooth functioning of the foreign exchange market.
“With the current level of reserves at 7 months of imports cover, as at end-December 2013, the Bank’s ability to intervene in the foreign exchange market is not in doubt,” she said.
CBN, she emphasised has the capacity to meet the demands of all foreign exchange users, insisting that the Bank has no immediate plans to devalue the Naira.
In the 55 years of CBN existence, she said, it has continuously focused on its core mandate and remains committed to achieving monetary and price stability, promoting sound financial system and defending the international value of our local currency.
The Bank’s policies and operations, she maintained, will continue to be firmly anchored on the realization of its principal objectives in line with the provision of the CBN Act 2007; with the principal goal of ensuring monetary and price stability, policy measures will continue to be consistent with sustainable non-inflationary growth, through the adoption of appropriate mix of monetary policy measures and coordination with fiscal policy.
CBN, therefore, she said, would continue to carry out its responsibilities by responding appropriately to emerging challenges and upholding the trust on it.
-Nenye Dom



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