MONETARY POLICY IS NEVER A PERMANENT FIX. By David Adenekan.
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Yemi Cardozo |
"It is important to say that we are only being economical with the truth, that we have generated close to 7 billion dollars from the sales of crude oil within a very short window period of the Cardozo's Central Bank reform; less than three months." Adenekan.
"Ironically, is this another manna from heaven or, can we call it an oil windfall in a world economic crisis?"
Let us give Mr. Olayemi Cardozo, the Governor of Central Bank some credit for a robust and sound monetary policy to put the apex bank back on the right track.
However, the trending tik-tok video clip in the news that comes along with this piece is a figment of imagination of a half truth.
To say also, that the large part of the money that was used to clear the back log in the forex market are direct foreign investment, loans and bonds that will be paid back with interest cannot be overemphasized.
Howover, it is important to say that we are only being economical with the truth, that we have generated close to 7 billion dollars from the sales of crude oil within a very short window period of the Cardozo's Central Bank reform; less than three months. Ironically, is this another manna from heaven or, can we call it an oil windfall in a world economic crisis?
Are we also saying the regime of oil swapping is over to have earned such a great amount to settle the back log? The bottom line is that, economic variables are not a mirage or, manna from heaven. Variables are based on statistical data that can be verified and what we have established as fact is, Nigeria government has borrowed money to be paid back with high interest rate to clear the back log in the forex market. Lobatan (finished)!
The Olayemi Cardozo led Central Bank of Nigeria is been dishonest and discreet with the huge foreign loans they have incurred to clear the back log to avoid a strong backlash or public outcry from many concerned citizens.
Hmmmm! Then, we are robbing Peter to rob Paul!!
Suffice it to say, we may be back to square one if we do not increase our level of productivity by fixing our refineries; looking inward to stop illegal mining of our mineral resources to generate great revenue, provide adequate security to our farmlands against the invasion of the marauders/fulani herdsmen to increase our agricultural production and encourage more diaspora remittances. These are the permanent fix to boost our liquidity in the forex market.
Yes, monetary policy is never a permanent fix.
In summary, the economic indicators are still pointing to a distress economy with the inflationary gap at more than 30% as reported in the National Bureau Of Statistic (NBS) last quarter of the year 2023 reports. This is coupled with the fact that our local currency, Naira is in a free - fall mode.
Hmmm, call me a sadist but, it is what it is.
Time will tell!
David Adenekan Is The Editor Of Shekinah International Magazine And A Media Expert. He Writes From Chicago, Illinois.
davidadenekan5@gmail.com.
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