Governor of Central Bank of Nigeria, CBN, Godwin Emefiele has presented the performance record of the Nigerian economy to the Senate.
According to Emefiele, the economy has faced stagnation and inflation in the last one year, adding however that the Federal Government was introducing of measures to remedy the situation.
Emefiele’s presentation began with current global economic conditions, which has been characterized by external shocks including the sharp decline in commodity prices, the geopolitical tensions along important global trading routes, and tightening of Monetary Policy in the United States of America.
After the executive session with the CBN boss, Senate President Bukola Saraki said, “The Senate in a closed door session with the CBN Governor deliberated on the new foreign exchange, management policy and the determination of foreign exchange market by demand and supply mechanism.
The need to continue to grow the economy and still on focus and diversification of the economy and also as regards the issues of some of the commercial banks.
Thereafter he answered questions from distinguished senators on some of this topical and national economic matters.
In a statement shortly after the meeting by the leadership of the Senate, the CBN governor was said to have drawn Iinkages of these occurrences with the Nigerian economy, especially with respect to the over 70 percent decline in oil prices from about S116 per barrel in June 2014 to about $30 per barrel earlier in the year.
According to the statement, “The Governor’s presentation also gave the Senators insight into the Bank’s decisions in the Foreign Exchange Market, and the rationale underlying the recent re-introduction of a Flexible Exchange Rate Mechanism in Nigeria.
He also delved into the health of the financial system and discussed the Bank’s detailed examinations of financial institutions as well as its zero tolerance for insider dealings by Board and Management of deposit money banks.
The Governor declared that the Strategic health of Nigeria’s financial system is still strong at this time.
