Sunday Aborisade, Abuja.

The Governor, Central Bank of Nigeria, Mr. Godwin Emefiele, explained to the Senate on Tuesday that some harsh monetary decisions taken by the United States and Nigeria’s over dependence on foreign goods were responsible for the continuous fall in the value of the naira against major foreign currencies.

The Chairman of the Senate Committee on Media and Publicity, Senator Sabi Abdullahi, stated this when he briefed journalists at the end of the closed-door meeting with the CBN boss.

Emefiele was said to have stated that other factors like the declining commodity prices and the geo-political tensions along important trading routes were equally injurious to the naira value.

Abdullahi said, “He (Emefiele) touched on the global economy conditions in which he informed us that we are not immune from external shocks that are currently going on in the world. These shocks include the following: declining commodity prices, geo-political tensions along important trading routes and tightening of monetary policies in the United States of America.

“The Senate appreciated the need to support the various policies being formulated to strengthen the currency.”

Abdullahi added that the Senate also acknowledged the pains that many people were experiencing currently, especially in the light of the shortage of foreign exchange for legitimate businesses.

He, however, said that having carefully considered the policies of the CBN, the upper legislative chamber would like to commend and support them because they were mostly geared towards increasing local production, creating jobs in the country, safeguarding the commonwealth and expanding economic opportunities and growth.

Abdullahi stated, “It is, therefore, critical that we all join our hands together to seek both short-term and long-term solutions to our underlying problems of non-diversification of foreign exchange earnings and revenues rather than pointing fingers at who did what and who’s to blame.

“The Senate believes strongly in the resilience of the Nigerian economy and the ingenuity of the Nigerian people, and as such, we are confident that we will all pull through these difficulties and come out as an equitable and prosperous nation.”

Abdullahi anchored the meeting with the CBN governor on the section of the CBN Act, which required that it should brief the National Assembly on periodic basis.

He said, “This appearance by the CBN governor and his management team is in line with Section 8 of the CBN Act, 2007, which requires that the governor of the bank provides the National Assembly periodic updates on the activities of the bank as well as the performance of the economy.

“In view of the above, the CBN governor presented a detailed, comprehensive and lucid account of the performance of the Nigerian economy in the last one year.”

The Senate spokesperson noted that Emefiele explained the occurrences within the Nigerian economy, especially with respect to the over 70 per cent decline in oil prices from about $116 per barrel in June 2014 to about less than $30 presently.

He said “The CBN governor also gave us an insight into the bank’s analysis and understanding of the situation and, therefore, the rationale underlining the various policy actions the bank has taken over the past couple of months.

“He also provided an insight into other countries that are facing similar difficulties and how they have dealt with them. Based on these analyses, it is clear that Nigeria is not doing badly, and I think we are on course to see how we can bring back Nigeria into the path of economic prosperity.

“After the presentation, of course, there were questions from distinguished senators on many issues, especially the stoppage of foreign exchange to the Bureaux De Change, the gradual rise in inflation, and the fallen foreign exchange reserves, among others.”


Source: http://www.punchng.com/emefiele-blames-naira-fall-on-us-policy-importation/

Lalasticlala

Apc is a joke

PoliticalThuG:
Apc is a joke

Did you read the article?

What about his own policies? Abeg leave trash for lawma

Abdullahi said, “He (Emefiele) touched on the global economy conditions in which he informed us that we are not immune from external shocks that are currently going on in the world. These shocks include the following: declining commodity prices, geo-political tensions along important trading routes and tightening of monetary policies in the United States of America.

I think the CBN Governor was on point here.
---
Most people may not be aware of the Monetary Policy divergence between the US Fed and most other Central Banks in the world. The US Fed just increased its FFR by 25 basis points and is expected to continue doing so in the coming quarters and years. On the other hand, the CBN just reduced its MPR by 200 basis points. Also, the outlook for the US economy looks better while that of Nigeria looks gloomy.
---
For those who understand Finance & Investments, you will appreciate that this has increased the Yield on US financial assets while reducing the yield on Nigerian financial assets. Consequently, foreign portfolio investors (FIP) are moving their funds from Nigeria to the US. As they move out, they are converting Naira to dollars adding to the demand for dollars and the pressure on the Naira. These are "external shocks" completely outside the control of the president or the CBN Governor.

F

At least he didn't blame the last administration

Crap

He also forgot to hold the last administration responsible for dollarizing the Nigerian economy, especially during the last elections.

http://www.premiumtimesng.com/news/176257-soludo-holds-fire-but-insists-n30-trillion-plus-aus-n8-6trillion-missing-under-okonjo-iweala.html

Yeah
Blame my dog also

.\Seems like he have been infected with the blame syndrome.

hmmm

But I thought they've been blaming the past administration? Who is fooling who?

apc and blame be like siemese twin, hahahaha apc don scam nigerians oooo, next nigerians were asked to vote for change, dey will be like >>>>>>> eni ori yo odile

Okay

P.A. I mean PAST ADMINISTRATION.

after consuming naija moni

Stfu

who is to blame, are the gods to blame Niger is looking for who to blame for their predicament




where are we really heading to

9ja check my signature

Every act of incompetency is a blame back to back. From GEJ to PDP now to America.
Chai! One chance noni.

allanphash7:
Crap

can someone tell this mumu that he is in that office to manage such external shocks and not to aportion blames? this guy is daft and corrupt!

Can't the government devalue the American dollar so that inflation can be reduced?It's like some top politicians are benefitting from it

The blame game continues.

PoliticalThuG:
Apc is a joke

This is isnt APC matter, the economy has been mismanaged over the years, this climaxed during the GEJ administration, where there was uncontrolled looting of funds, imagine touts and criminals oil vandals given contracts to import navy war ship and contracts to protect our pipelines.

Not to talk of the over dependence on crude oil exports which killed the manufacturing industries and any industry capable of generating income from exporting, leading to over dependence on imports, imagine even tooth picks had and artisans, house helps prostitutes had to imported into naija cos every one got lazy due to oil awoof.

So stop the blame game join hands and rebuild the country. STOP WAILING.

Lol.. thread filled with a multitude of jonathanian dullards who read but cant comprehend jack; they rather prefer to excitedly jump around unclad exposing their ignorance. Reason behind the lull in the economy has been succinctly explained, but it would be silly expecting empty skulls to comprehend this. . . And yes, to add to the explanations by Emefiele, the impact of the prevailing issues would definitely not have been this bad if Nigeria had sufficient saved forex funds to cushion the effects.

Lol

Must they blame someone?