Naira fall: Nigeria’s economy’ll bounce back, Senate assures
Senate, yesterday, expressed confidence that the economy would strongly bounce back, just as it said that it was not doing badly when compared with other countries across the globe.
The upper chamber stated this after it engaged the Governor of the Central Bank
of Nigeria, CBN, Mr. Godwin Emefiele, and top management team of the apex bank
in a two-hour closed door meeting over the continued depreciation of the naira
against the United States dollar.
Speaking through its spokesman, Senator Aliyu Sabi Abdullahi, the Senate said the analysis given by the CBN governor, also showed that Nigeria was not doing badly in many macroeconomic indices, when compared to its peers.
“The governor of the CBN presented a detailed, comprehensive and lucid account of the performance of the Nigerian economy in the last one year. His presentation began with current global economic conditions, which has been characterised by external shocks including the sharp decline in commodity prices, geopolitical tensions along important global trading routes and tightening of monetary policy in the United States of America.
“He drew linkages of these occurrences with the Nigerian economy, especially with respect to the over 70 percent decline in oil price from about S30 per barrel. The governor’s presentation also gave us an insight into the bank’s analysis and understanding of the situation, and therefore, the rationale underlying the countervailing policy actions it has taken over the last couple of months. He also gave the Senate cross- country evidence of how other countries around the world have been dealing with the same external shocks,” he added.
Sabi stated that: “After the presentation, many senators asked a lot of pertinent questions and raised issues concerning the health of the banking system, the stoppage of sales of foreign exchange to BDCs, gradual rise in inflation, fall in foreign exchange reserves, exclusion of some items from access to foreign exchange, and policy coordination between the fiscal and monetary authorities.
Speaking through its spokesman, Senator Aliyu Sabi Abdullahi, the Senate said the analysis given by the CBN governor, also showed that Nigeria was not doing badly in many macroeconomic indices, when compared to its peers.
“The governor of the CBN presented a detailed, comprehensive and lucid account of the performance of the Nigerian economy in the last one year. His presentation began with current global economic conditions, which has been characterised by external shocks including the sharp decline in commodity prices, geopolitical tensions along important global trading routes and tightening of monetary policy in the United States of America.
“He drew linkages of these occurrences with the Nigerian economy, especially with respect to the over 70 percent decline in oil price from about S30 per barrel. The governor’s presentation also gave us an insight into the bank’s analysis and understanding of the situation, and therefore, the rationale underlying the countervailing policy actions it has taken over the last couple of months. He also gave the Senate cross- country evidence of how other countries around the world have been dealing with the same external shocks,” he added.
Sabi stated that: “After the presentation, many senators asked a lot of pertinent questions and raised issues concerning the health of the banking system, the stoppage of sales of foreign exchange to BDCs, gradual rise in inflation, fall in foreign exchange reserves, exclusion of some items from access to foreign exchange, and policy coordination between the fiscal and monetary authorities.
Check The Nigerian Pilot newspaper for the
full story.
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