In the face of rising demand for foreign exchange for goods, services, and other needs, the governor, Central Bank of Nigeria (CBN), Mr. Godwin Emefiele has said monetary policy alone cannot wholly address the country’s foreign exchange challenges.
Emefiele disclosed this in a keynote to the maiden bi-annual non-oil export summit held in Lagos yesterday, noting that the CBN had been working to manage both the demand and supply side to meet foreign exchange obligations.
Attributing the current challenges of the Nigerian economy to a combination of local and global factors such as the COVID-19 pandemic, delays in global logistic value chains and local security challenges, he expressed concern that most of Nigeria’s current sources of foreign exchange inflows were unreliable and were prone to fluctuations of global economic developments.
Emefiele noted that the global economic challenges had impacted food production among others and had exerted undue pressure on the economy, thereby exposing the fragility of the Nigerian economy and making macroeconomic management very difficult.
While stressing the need for a more diversified economy, the governor said Monetary Policy alone could not bear all the burden of the expected adjustments needed to manage the challenges to the Nigerian economy.
“These problems call for urgent design and steadfast implementation of other supportive, structural, and complementary policies that are broad based, coordinated and focused on complementing the work of the monetary authority,” he noted.