Business
CBN Defends Selective Forex Restriction
The Central Bank of Nigeria (CBN) has defended its decision to stop the use of foreign exchange for the importation of certain goods.
This is contained in a statement signed by the CBN Director of Corporate Communications, Ibrahim Mu’azu, in Abuja on Friday.
The statement, which was made available to The Tide source said the CBN took the decision because it was important and the right thing to do.
The statement, which was in reply to “The Economist Magazine’s article of July 4, titled Toothpick Alert”, sought to further explain the CBN’s policy of restricted importation.
The article ignored some salient points, which made up part of the reasons that informed the decision of the apex bank, the statement said.
“First, the article seems to ignore the fact that the exchange rate is simply a price that is essentially determined by the forces of supply and demand.
“The CBN believes that the 48 per cent decline in oil prices may not be transitory and made bold policy changes including closure of the subsidised Official FX Window.
“This resulted in 22 per cent depreciation in the currency, the Naira.
“This is because the Nigerian economy is heavily dependent on imports and the exchange rate pass-through to inflation is high, we believe that this adjustment is optimal at this time.”
It stated that many other issues had to be considered.
“Contrary to the article’s argument, adjustments to a sharp decline in supply of U.S. Dollars cannot all be borne by an indeterminate depreciation, without considering the full impact on the Nigerian economy.
“The demand side also has to be considered, not just in response to the pressure on the Naira, but as an opportunity to change the economy’s structure, resuscitate local manufacturing, and expand job creation for citizens.
According to the statement, CBN believes that Nigeria cannot attain its full potential by importing anything and everything, saying the trend has weakened the operating capacities of Nigeria’s industries.
It said that now was a good opportunity to begin to reverse the trend of importation.
“Although the article hastily derides this idea as lacking in economic foundations, it is the same principles upon which many other countries do not allow importation of certain products.”
The statement said the article appeared condescending to suggest that the list of items seemed “to have been drawn up by someone wandering around a house and a building site”.
It said on the contrary, items were only included after thorough and exhaustive discussions at the highest policy making body of the Bank with the strategic national interest of Nigeria.
According to the statement, it is hoped that Nigerians will seize the opportunity to develop the country.
“Like other oil-exporting countries, Nigeria is grappling with its share of the aftermath of the oil price decline.
“Despite this, our economic fundamentals remain strong. Inflation is still within the CBN’s single-digit band, the exchange rate has stabilised around N197 per U.S. dollar for the last five months.
“GDP expanded by four per cent in the first quarter of 2015, and 469,070 new jobs were created in the same quarter.
“With ingenuity and productiveness, we believe that Nigerians will seize this opportunity and use it for the greater good of the country.
“As we are in a new administration in Nigeria, we must continue to ensure policy stability at all times”, it said.
Business
Kenyan Runners Dominate Berlin Marathons
Kenya made it a clean sweep at the Berlin Marathon with Sabastian Sawe winning the men’s race and Rosemary Wanjiru triumphing in the women’s.
Sawe finished in two hours, two minutes and 16 seconds to make it three wins in his first three marathons.
The 30-year-old, who was victorious at this year’s London Marathon, set a sizzling pace as he left the field behind and ran much of the race surrounded only by his pacesetters.
Japan’s Akasaki Akira came second after a powerful latter half of the race, finishing almost four minutes behind Sawe, while Ethiopia’s Chimdessa Debele followed in third.
“I did my best and I am happy for this performance,” said Sawe.
“I am so happy for this year. I felt well but you cannot change the weather. Next year will be better.”
Sawe had Kelvin Kiptum’s 2023 world record of 2:00:35 in his sights when he reached halfway in 1:00:12, but faded towards the end.
In the women’s race, Wanjiru sped away from the lead pack after 25 kilometers before finishing in 2:21:05.
Ethiopia’s Dera Dida followed three seconds behind Wanjiru, with Azmera Gebru, also of Ethiopia, coming third in 2:21:29.
Wanjiru’s time was 12 minutes slower than compatriot Ruth Chepng’etich’s world record of 2:09:56, which she set in Chicago in 2024.
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