Tuesday, October 4, 2022

CBN to change monetary policy direction, to focus on FinTechs, Crypto, other digital payment systems

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Ibrahim Ramalan
Ibrahim Ramalan
Ibrahim Ramalan is a graduate of Mass Communications from the Ahmadu Bello University (ABU) Zaria. With nearly a decade-long, active journalism practice, Mr Ramalan has been able to rise from a cub reporter to the exalted position of an editor; first as Arts Editor with the Blueprint Newspapers before resigning in 2019; second and presently as an Associate Editor of the Daily Nigerian online newspaper. He can be reached via [email protected], or www.facebook.com/ibrahim.ramalana, or @McRamalan on Twitter.
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The Governor, Central Bank of Nigeria, CBN, Godwin Emefiele, has said that the Monetary Policy Committee will chart a new course for an improved monetary policy and CBN that will provide direction for monetary policy in Nigeria.

The governor said this at a Monetary Policy Committee, MPC, Strategic Retreat in Lakowe, Ibeju-Lekki in Lagos on Friday.

The retreat has “Monetary Policy Implementation in a Digitally-Evolving Developing Economy’’, as its theme.

Mr Emefiele said that technology and innovation was playing a major role in output growth and economic development in Nigeria, hence the need to explore new ways of adapting monetary policy tools to improving the contribution of technology and innovations to the growth equation.

He said that monetary policy had been severely challenged, as its policy space narrowed significantly, in some cases, paradoxically and necessitating the need to rethink monetary policy in the context of emerging challenges and economic transformation.

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“I, therefore, commend our choice of the theme of this retreat ‘Monetary Policy Implementation in a Digitally-Evolving Developing Economy’.

“The evolution of FinTechs, Cryptocurrencies, Digital Payments, Artificial Intelligence and Machine Learning, have changed the functioning of the financial and banking sectors, both globally and domestically.

“Therefore, the urgent call for the need to rethink financial system regulation, supervision and monetary policy implementation,’’ the CBN governor said.

According to Mr Emefiele, whereas, innovations come with lot of risks and uncertainties for the sectors, they also have many benefits for positive economic transformation, particularly, financial inclusion which has been the principal catalyst for inclusive growth, poverty reduction and employment generation.

The governor also said that the apex bank had championed the financial inclusion principle to achieve the Sustainable Development Goals, SDGs, including the recent launch of the eNaira.

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He said that since its launch, a large unbanked populace had been captured into the formal sectors, saying that it had also improved monetary policy efficiency and positive impact on the better standard of living for the population.

Mr Emefiele said that the central banking and monetary policy relevance in the digital ecosystem was sometime challenged as the regulatory oversight functions were largely eroded or weakened by impotency of traditional tools in carrying out those functions.

He said, “In order to ensure the relevance of monetary policy and the role of monetary authorities in the new digital world, MPC members must embrace themselves with advanced level understanding of the interplay of digitalisation with monetary policy objectives, targets and tools.’’

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Mr Emefiele said that the purpose of the retreat was to conduct a self-appraisal on committee’s performance for four years after the last retreat was held and brainstorm on new methods of addressing the increasing challenges confronting monetary policy formulation and implementation in Nigeria.

“First is that the purpose of this is to conduct a self-appraisal to tell ourselves how have we performed in the light of the challenges that confronted us in the last three to four years after we held the last retreat.

“How have we performed in the implementation of some of those decisions we reached at that retreat and then we begin to tell ourselves again, if we haven’t done well.”

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21 COMMENTS

  1. Emefiele have seen that he made huge mistake in the financial sector especially with the ban on cryptocurrency in Nigeria. He should have brought out policies to monitor cryptocurrency in the country. He has also found out that even with the ban, it did not still stop anything as fintechs also found ways to continue trading cryptos. Since he cannot beat them, he has decided to join.
    If he had not banned cryptos, Nigeria would have moved much forward in the financial world.
    By this singular act of his banning cryptos, he has contributed in retarding Nigeria in the financial market. He should be held responsible.

    • In fact,the very day I learnt that he banned cryptocurrency in Nigeria I was just laughing at him because he does not know anything regarding crypto world. I would not lie to you immediately he banned crypto it was then Nigerians increased in investing in crypto seriously.Emefiele had totally destroyed Nigeria Currency through his Poor banking policy.

  2. As such the rate of trading on crypto exchange keep rising despite the banning if not mistaken, Nigerian we’re among the top cryptocurrency trader in the world. I pray he do the needful ASAP.

    • During Mr Godwin Emefiele’s tenure naira depreciated and detoriated badly, going on to ban cryptocurrencies, he did more harm to the Nigerian economy, we shouldn’t exactly blame the CBN governor as the ban came after the endsars protest in Nigeria as we live in a very corrupt country. The world’s finest countries are embracing and regulating cryptocurrencies now with U.S.A taking the lead.

  3. Does this mean we’d be able to purchase cryptocurrency with our bank cards? Nigeria is obviously a top cryptocurrency trading country so I see no reason why we shouldn’t be able to use our bank cards for such purpose.

  4. This man is not okay upstair, was it not thisame CBN president that speak against cryptocurrency, many advance country are into digital growth but is like this country is coursed with bad leaders nonsense.

    • Ban on crypto, bank card payment limits and ban on international transactions… Emefiele’s weakest decisions. He has contributed immensely to Nigeria’s economic draught and stampede.

  5. With them and without them, we are making it in crypto space. Naira is only for Nigeria and cryptos for the world, if you can’t beat them then you join them. Cryptocurrency market is bigger than any country economic sector, is an opportunities for any country to tap from the market of crypto to make it from the crypto market but who does not have a eye will not see it.

  6. If CBN can listen to me I can advice them on how to bounce back
    Especially with cryptocurrency it will be a boom to this country

  7. Hmm do not conclude yet this might be an idea from our old fashion leaders to be able to access and steal money for their last chance

  8. He’s the main reason we’re experiencing hardship in Nigéria cos so many business men are finding it hard to their usual international transactions as he limits our card as if we’re stealing money with it….. He better acts fast sha…. We still trade and transact daily on our Crypto space .

  9. Tk God is never too late for him to realize his mistakes. Imagine if he had not banned crypto, and introduce e-naira he has forgotten that effectiveness of e naira depends on functionality and acceptablity of cryptocurrency.

  10. Watch out for Rillio digital currency of which rillion is already integrating into the internet already ..Not a crypto currency…but a Feature value digital currency for the world 🌍 at large.

  11. I thought this man studied modern economic growth of the develop nations but his decision to ban crypto trading via banks clearly showed that he studied Jurassic economy

  12. One dollar is now seven hundred and something naira, besides the devaluation and the depreciation of the Nigerian naira that’s affecting the Nigerian economy the world’s finest countries are already at this point embracing and regulating cryptocurrencies with the United States of America taking the lead…

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