The Director, Monetary Policy Department of the Central Bank of Nigeria (CBN), Moses Kpughur, has expressed confidence in the ability of the apex bank to achieve exchange rate stability, which is one of its core mandates. Speaking at the 21st Annual Conference of the Association of National Accountants of Nigeria (ANAN) in Abuja, he expressed concern over volatility of the exchange rate and high inflation rate.
Kpughur stated this in a paper titled: Economic Management and Monetary Policy: An Assessment of the Policy Environment in Uncertain Times. He said the apex bank had been able to control inflation, pointing out that as long as there is increase in liquidity or volume of cash in circulation, too much money would chase fewer goods.
He also said that the apex bank was, in its quest for price stability, taking note of the interest rate, exchange rate and the prices of goods and services. He recalled that two years ago, the entire world was shocked with the drop in crude oil prices from as high as $108 per barrel to as low as under $40 per barrel.
Kpughur said that the shock affected Nigeria’s growth projections and those of other oil producing countries. “The drop in oil revenue effected government’s expenditure,’’ the CBN chief said. He blamed the situation on government’s over-dependence on a single commodity, which is crude oil. Read more