How CBN Failed To Curb Inflation, Stop Naira Slide – Report
A United States-based magazine, Global Finance, says the Central Bank of Nigeria has failed to curb rising inflation and stop the naira from sliding against the United States dollar.
This was disclosed in an October 2021 report titled ‘Central Banker Report Cards 202: The Art of Timing’, which provides reviews and ratings on the performances of different central banks in different countries across the world.
Using a scale of A to F with A being the highest grade and F being the lowest, based on a series of objective and subjective metrics, Global Finance rated Emefiele-led CBN a “C” grade.
The rating and review focus on the performance of the apex bank from July 1, 2020, to June 30, 2021.
The report read in part;
“In recent years, Nigeria’s central bank has engaged in deliberate measures to ensure the stability of the Naira. The measures have included a tight grip on the local currency and even halting the sale of forex to bureau de changes.
“Unfortunately, the measures have not borne the desired fruits. In early September, the Naira was on a free-fall hitting a record low of N532 to the dollar. In many aspects, the volatility of the Naira is synonymous with the reign of Emefiele, which since 2014 has been characterised by rising inflation and tremors in the banking industry. In July, the apex bank held its benchmark rate at 11.5 per cent for a fifth straight meeting.
“The decision was informed by the fact that the current situation neither gives room for tightening as it will hurt output growth, nor, loosening, as it will exacerbate inflationary pressures. In June, inflation stood at 17.75 per cent, well above the bank’s ceiling.”