The former Director-General of the West African Monetary Institute Ghana, Professor Ngozi Egbuna, has suggested how the Central Bank of Nigeria Governor, Yemi Cardoso can maintain price stability in view of the current inflationary pressure in the country.
Professor Egbuna said this at the Association of Capital Market Academics of Nigeria symposium on Friday monitored by NewsNGR.
She said the exchange rate crisis is impacting negatively on the prices of imported products, adding that measures needed to be taken to address it.
“To keep the exchange rate, the CBN must either restrict capital flows or give up its control over the domestic money supply, interest rate, and price level,” she said.
Egbuna highlighted short-term, medium-term, and long-term approaches the apex bank should adopt.
“In the short-term, the CBN must reclaim the independence of the Central Bank through the instrument autonomy and policy consistency; human capital is critical to the achievement of price stability; engender inclusivity in the management of the Bank and the 2024 budget and its execution.
“In the medium term, strengthening of the coordination of fiscal monetary policy; resolving the cash shortage situation; Nigerian debt portfolio should be discussed exhaustively; provision of policy to encourage national savings and diaspora investment initiatives
“In the long term, the apex bank must review monetary policy model; ensure financial inclusion at all levels, review of development initiatives, such as the anchor borrowers program; review e-naira policy, carryout massive financial education in Nigeria; transition to a transparent and sustainable foreign exchange rate; pursue diversification of the economy that sustain growth in the private non-oil investment, and commission of a study to reform CBN’s operating model,” the Prof noted.