Obaseki Criticizes CBN’s Latest Monetary Measures

Obaseki Criticizes CBN’s Latest Monetary Measures....KINDLY READ THE FULL STORY HERE▶

Edo State Governor, Godwin Obaseki, has criticized the Central Bank of Nigeria’s decision to raise the Monetary Policy Rate by 22.75 percent, stating that it is not the solution to the prevailing economic challenges in the country. Speaking as a guest speaker at the Annual Dinner of the Edo Zone Bankers Committee in Benin City, Obaseki emphasized the importance of promoting local production to meet the demand for goods and services.

In a video shared on his official Twitter account on Monday, the governor expressed his perspective, saying, “I understand the monetary rationale for increasing MPR, but fundamentally and fiscally, it is not going to lead to growth in our economy. We must focus on the fundamentals, which involve increasing production and ensuring our citizens produce the goods and services we consume, relying less on imports.”

Obaseki stressed that economic and monetary policies should not be solely determined by the exchange rate. He argued against the approach of increasing cash reserves to tighten liquidity, stating that such a strategy could be detrimental to the economy. Acknowledging the challenges faced by monetary authorities, he emphasized the need for a more comprehensive approach to planning, highlighting the importance of addressing production and reducing dependence on imports for sustainable economic growth.

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