Muhammad Sanusi, the former Emir of Kano, has disclosed the methods used by the Central Bank of Nigeria (CBN) to devalue the naira.
According to Sanusi, the CBN’s lending to the federal government during the tenure of former President Muhammadu Buhari created inflationary pressure in Nigeria, which in turn caused the value of the Naira to decline.
Speaking on Tuesday at MTN Capital Markets Day, Sanusi drew attention to the CBN’s aggressive monetary tightening tactics, which included the use of open market operations, Open Buy Back (OBB), and high T-bill rates, among other liquidity management tools.
He clarified that these actions demonstrated the top bank’s dedication to upholding the stability of the financial system and reining down inflation.
“I am optimistic, especially in the short term. We’ve had eight years of rapid expansion of the central bank’s balance sheet through ways and means.
“And that has fueled inflation and weakened the currency. And that is a fact,” he said.
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