P
ProfRem
Guest
The Governor of Central Bank of Nigeria, CBN, Mr. Godwin Emefiele, yesterday, during a closed-door meeting with Nigerian Senators painted a gloomy picture of the state of the economy.
CBN governor disclosed to the senators that it was frightening that the nation was experiencing economic stagnation and inflation at the same time, explaining that ordinarily, both were not supposed to happen simultaneously.
Emefiele’s presentation began with the causes of the bad economic shape and itemised the following:
- Current global economic conditions
- External shocks including the sharp decline in commodity prices,
- the geopoliticai tensions along important global trading routes, and tightening of Monetary Policy in the United States of America
- Decline in Crude oil prices - over 70 percent decline in oil prices from about S116 per barrel in June 2014 to about $30 per barrel earlier in the year.
- Renewed bombing of pipelines by Niger Delta Avengers as one of the factors pulling down the economy.
The Governor’s presentation also gave the Senators insight into the Apex Bank’s decisions in the Foreign Exchange Market, and the rationale underlying the recent re-introduction of a Flexible Exchange Rate Mechanism in Nigeria.
He also delved into the health of the financial system and discussed the Bank’s detailed examinations of financial institutions as well as its zero tolerance for insider dealings by Board and Management of deposit money banks.
In sum, the Governor declared that the Strategic health of Nigeria’s financial system is still strong at this time.
CBN governor disclosed to the senators that it was frightening that the nation was experiencing economic stagnation and inflation at the same time, explaining that ordinarily, both were not supposed to happen simultaneously.
Emefiele’s presentation began with the causes of the bad economic shape and itemised the following:
- Current global economic conditions
- External shocks including the sharp decline in commodity prices,
- the geopoliticai tensions along important global trading routes, and tightening of Monetary Policy in the United States of America
- Decline in Crude oil prices - over 70 percent decline in oil prices from about S116 per barrel in June 2014 to about $30 per barrel earlier in the year.
- Renewed bombing of pipelines by Niger Delta Avengers as one of the factors pulling down the economy.
The Governor’s presentation also gave the Senators insight into the Apex Bank’s decisions in the Foreign Exchange Market, and the rationale underlying the recent re-introduction of a Flexible Exchange Rate Mechanism in Nigeria.
He also delved into the health of the financial system and discussed the Bank’s detailed examinations of financial institutions as well as its zero tolerance for insider dealings by Board and Management of deposit money banks.
In sum, the Governor declared that the Strategic health of Nigeria’s financial system is still strong at this time.