Why CBN may soon be tired of injecting dollars to defend naira—Yilu
Leading Corporate Finance Planning and Analysis professional, Mr. Sina Yilu has observed that considering the resilient of the dollar to converge with naira following the over $4bn so far injected into the forex market by the Central Bank of Nigeria (CBN) since late last year, indications are rife that it may soon become tired.
According to him, becoming tired may spell doom for the economy because other indices that are suppose to work together with the momentary dollar injection to the economy are not fully activated, meaning that the injections are working alone and it cannot give the target result after all.
In an interview, Yilu averred that “Going by the MPC decisions in the past couple of meetings, it’s very clear to say that the main aim of these meetings is to continue to defend the naira”.
“This is by way of keeping interest rate high; continue to make emergency forex sales to keep it at a point they feel is its real value.
Continuing, he said “In my take, I don’t think it’s taking into consideration that either cohesion or coordination with fiscal policy regime or any consideration of what to do to take away the economy out of recession”.
