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The Central Bank of Nigeria (CBN) has stated that it has fulfilled the statutory meeting requirements of the Monetary Policy Committee (MPC) for this year. The clarification comes in the wake of the postponement of the scheduled MPC meeting for the month, raising expectations for policy direction.
Governor Olayemi Cardoso addressed the matter, explaining that the CBN Act of 2007 mandates the MPC to meet at least four times a year, and the bank has satisfied this requirement for 2023. He highlighted the focus on ensuring the effectiveness of MPC meetings, addressing the dislocation of monetary transmission mechanisms and working to make the meetings useful and effective.
The MPC is the highest monetary policy-making body in Nigeria, responsible for formulating monetary and credit policy. It consists of the CBN governor, the four deputy governors, two members of the Board of Directors, three members appointed by the President, and two members appointed by the CBN governor.
Cardoso outlined the future direction of monetary policies, aiming to achieve price stability, foster sustainable economic growth, stabilize the exchange rate of the naira, and reduce interest rates to facilitate borrowing and investments in the real sector. He also mentioned plans to develop new foreign exchange guidelines and legislation, with extensive consultations conducted with banks and forex market operators before implementing any new requirements. Cardoso highlighted improvements in forex market liquidity, with the potential for significant daily trade exceeding $1.0 billion. The goal is to rebuild foreign exchange reserves to levels comparable with similar economies through discipline and focused commitment.
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