I STAND WITH THE NBA ON THIS
I like and admire Mr. Sanusi for his audacity. But his sense of braggadocio, to put it mildly, is nauseating. He is a better candidate for the position of a State Governor or Regional Premier. He has outlived his usefulness as the Governor of the Apex Bank and it is time for him to go.
I like his type in leadership position, because they are not afraid to take decision. But what is worrisome about the Governor is his dictatorial tendency. No one wants a flip-flopper as the Governor of the Central Bank, but Mr. Sanusi must be willing to embrace changes and be less rigid, given the egalitarian mindset of most Nigerians and the dynamics nature of our financial institutions. His noble bearing notwithstanding, if he wants to remain relevant in contemporary Nigerian polity and hope to command popular acceptance nation-wide as a leader, he must retain the service of a contemporary scholar for a one-on-one coaching job on leadership, negotiation, and organizational behavior.
I like his type in leadership position, because they are not afraid to take decision. But what is worrisome about the Governor is his dictatorial tendency. No one wants a flip-flopper as the Governor of the Central Bank, but Mr. Sanusi must be willing to embrace changes and be less rigid, given the egalitarian mindset of most Nigerians and the dynamics nature of our financial institutions. His noble bearing notwithstanding, if he wants to remain relevant in contemporary Nigerian polity and hope to command popular acceptance nation-wide as a leader, he must retain the service of a contemporary scholar for a one-on-one coaching job on leadership, negotiation, and organizational behavior.
I am not an Economist and I do not profess to be one, but I have some basic understanding of Finance and International Economics and Development. I must say, without any equivocation, that there is no economic or strategic explanation for the Governor's plan to introduce N5000.00 note into the Nigerian financial market. In addition, his plan to eliminate the 5, 10, and 20 Naira notes and replace them with coins would only exacerbate the present devaluation state of our currency.
The only visible explanation for the Governor's action is that our currency is worthless. In other words, the existing denominations are burdensome to handle. The buying power of the currency is substantially low, and you have to carry many bills to do a normal purchase. The Governor wants to save Nigerians the trouble of carrying larger bills in their wallet. Yet the same Governor wants them to be carrying 5, 10, and 20 Naira coins in their wallet. Where is the informed economic judgment in his decision?
Why do we have a Governor of Central Bank? Is it not to regulate the financial market and stabilize the economy? When is the last time the Governor has talked about interest rate or open market operation? This not how to regulate the supply of money and stabilize or grow the economy. This is simply a convenience move that would devalue our currency the more.
What the Governor of Central Bank should be thinking about is how to regulate the financial system to alleviate the prevailing hyperinflation rate, instead of printing larger bills. This is a cosmetic approach - it only makes your wallet lighter, while the buying power of the currency remains the same and diminishes in value gradually.
The only visible explanation for the Governor's action is that our currency is worthless. In other words, the existing denominations are burdensome to handle. The buying power of the currency is substantially low, and you have to carry many bills to do a normal purchase. The Governor wants to save Nigerians the trouble of carrying larger bills in their wallet. Yet the same Governor wants them to be carrying 5, 10, and 20 Naira coins in their wallet. Where is the informed economic judgment in his decision?
Why do we have a Governor of Central Bank? Is it not to regulate the financial market and stabilize the economy? When is the last time the Governor has talked about interest rate or open market operation? This not how to regulate the supply of money and stabilize or grow the economy. This is simply a convenience move that would devalue our currency the more.
What the Governor of Central Bank should be thinking about is how to regulate the financial system to alleviate the prevailing hyperinflation rate, instead of printing larger bills. This is a cosmetic approach - it only makes your wallet lighter, while the buying power of the currency remains the same and diminishes in value gradually.
I do not know what Mr Sanusi's motivations are; however, as they relate to the N5000.00 note, as well as stabilization of our currency and the entire financial system, they lack economic sense, and therefore, should be rejected by the President and the National Assembly. It is simply cosmetic. There is no substance to it and he should be stopped for the good of our financial market and the national economic system.
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