“Intelligence reports at the disposal of the bank reveal the involvement of some unpatriotic elements funding the push to have the Central Bank of Nigeria and the federal government reverse its foreign-exchange policy,” Isaac Okorafor, a spokesman, said in a statement on the Abuja-based central bank’s website. “Self-centered individuals, who have failed to assail our patriotic position, have resorted to the sponsorship of serial propaganda to misinform and mislead the public on the objectives of our policies.”
Nigeria Central Bank Hits Out at ‘Unpatriotic’ Policy Critics — https://www.bloomberg.com/news/articles/2017-01-27/nigeria-central-bank-hits-out-at-unpatriotic-policy-critics?cmpid=socialflow-twitter-business&utm_content=business&utm_campaign=socialflow-organic&utm_source=twitter&utm_medium=social
Interesting updates from the last few days. It seems like the central bank has finally accepted that no one is buying it’s “we are floating” story. We are officially back on the currency peg which we kind of never left. We are also back to the pointing fingers game, moving from foreign speculators to unpatriotic elements. And of course, it’s all done to “protect the poor”. Never mind that the poor are the most vulnerable in a struggling economy.
It’s a shame that all the evidence of the failures of a currency peg have been abandoned because of a small uptick in oil prices.
To be clear I think the new currency peg is just dumb. But let’s not kid ourselves that it’s there because the evidence supports that it is the best thing to do, or that it is there to help the poor. It is there because of POLITICS. Which is also why I have no hope that it will change anytime soon.