It became the final economic policy/decision-making organ that is expected to ensure correct implementation of the country’s existing economic laws by means of presidential policy directives. It could also propose necessary amendments to those laws. In effect, working behind the scenes, PEAC is expected to present economic scenario outcomes of various policy options for the President to make informed choice. The chosen option should then be cast in the form of a policy directive.
Sadly, this missing modus operandi led the frustrated President to say on at least two occasions that CBN would be given written instruction not to release the country’s forex for food imports. So the impanelling of PEAC in the second term of the administration in all probability was to put an end to lingering economic policy implementation failures.
In the address, the PEAC chairman superfluously highlighted economic problems that were well known whereas the occasion should have been used to shed light on specific government action already taken on the advice of PEAC to tackle the nagging issues such as macroeconomic instability, accelerating inflation, removing exchange rate differentials without devaluation to allow the economy to grow, boosting government revenue in order to reduce borrowing whose utilisation is opaque.
Now, the Nigerian economy, which sank steadily to become the poverty capital of the world beginning in May 2018, bears the very mature fruits of uninterrupted five decades of macroeconomic instability . The situation arose because successive governors of CBN including the incumbent refused to adhere to central banking principles.
This newspaper has since 2001 campaigned for the supply of fuel to the unceasing macroeconomic instability to be turned off by adopting best practice single forex exchange rate fixing system . Relatedly in the 2020 Article IV Consultation report released on 8/2/2021, the IMF asserted that monetary policy would support the economy through a well-functioning exchange rate system.
Finance Finance Latest News, Finance Finance Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: GuardianNigeria - 🏆 1. / 94 Read more »