Sanusi Exposes CBN’s Role in Naira Decline
Unveiling the Factors Behind Naira's Slide: Sanusi's Eye-Opener on CBN's Role
Former Emir of Kano, Muhammad Sanusi, unveiled insights on how the Central Bank of Nigeria (CBN) contributed to the weakening of the Naira.
During the MTN Capital Markets Day on Tuesday, Sanusi explained that the CBN’s substantial lending to the federal government, particularly during former President Muhammadu Buhari’s administration, led to inflationary pressures. This, in turn, resulted in the devaluation of the Naira.
Sanusi highlighted the CBN’s use of aggressive monetary tightening measures, such as open market operations, Open Buy Back (OBB), and high T-bills rates. These steps were taken to maintain financial system stability and control inflation, reflecting the apex bank’s commitment to its core mandate.
“In the short term, I am optimistic. We’ve witnessed eight years of rapid expansion of the central bank’s balance sheet through various means, fueling inflation and weakening the currency. This is a fact,” Sanusi asserted.
