In a bid to address the rising inflationary pressures in the country, the Senate Committee on Banking, Insurance, and other Financial Institutions has called on the Central Bank of Nigeria (CBN) to take decisive measures to curb inflation. The committee’s chairman made this plea during a retreat with the Nigeria Deposit Insurance Corporation (NDIC) in Lagos on Saturday.
The chairman acknowledged recent initiatives by the CBN, including the issuance of circulars and the imposition of limits on the net operating positions of banks. He highlighted the validation of outstanding obligations known as forwards and observed a strengthening of the naira in the past few days. The chairman urged stakeholders to give the CBN some time to allow these policy measures to take effect.
Expressing optimism about the potential impact of recent policy decisions, the chairman emphasized the need for the CBN to focus on moderating inflation as a critical step for overall economic stability. He noted that addressing inflation would likely have positive effects on other economic indicators such as interest rates and exchange rates.
The committee’s call comes against the backdrop of ongoing efforts by the CBN to stabilize the nation’s economy amid inflationary challenges. The CBN has implemented measures to manage the net operating positions of banks and validate outstanding obligations, with the aim of curbing the depreciation of the national currency.
As the Senate Committee encourages the CBN to intensify its efforts in taming inflation, the central bank is expected to play a crucial role in shaping policies that will have a cascading effect on various aspects of the economy. The committee believes that by focusing on inflation moderation, a domino effect will occur, positively influencing other economic indicators and fostering a more stable economic environment.
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