Is recent policy stance of the Central Bank on the depreciation of the naira overly criticized by the foreign media?

Oluwole A.
#1

19.06.09

My impression is that the choice the CBN had to make was between two alternatives. It is either it continued to use the reserves to support speculative forex trade in the name of defending the Naira or allow the currency to adjust to market realities. Incidentally, a lot of developing countries, including the emerging markets had had to depreciate their currency to adjust to their current account positions. South Africa is a close example. The debate is a healthy one, but it appears people are just not interested in discussing policies under Yar'Adua's administration.

faisal B.
#2

19.06.09

the CBN under soludo witnessed too many policy changes in respect of depreciation . the CBN was not sure whether to allow the market forces to determine the price of the naira or to use a policy by fiat. the CBN attempted to do what Ghana did by reducing the number of 0s in the currency note but this did not see the light of the day . the issue of depreciation is our business because it affects us locally more. we should just generally get our acts together . the country is static , too many policies and talk without any meaningful impact on the citizenry. we have serious infrastructural problems in this country, the govt should quickly address that, every other thing will fall into place including stability of the naira.

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