Regulatory policy

COVID-19, Russian-Ukrainian war hampered effectiveness of monetary policy regime –Emefiele – The Sun Nigeria

By Chinwendu Obienyi

Central The Bank’s Governor, Godwin Emefiele, said the apex bank is working to improve monetary policies suited to the current realities of the Nigerian economy.

Emefiele said the effectiveness of the CBN’s monetary policy initiatives over the past few years had been hampered by the global financial crisis, including the COVID-19 pandemic, the Russian-Ukrainian war and global inflation.

The CBN boss who said this at the 2022 Monetary Policy Committee (MPC) strategic retreat in Lagos on Friday, on the topic of implementing monetary policy in a digitally changing economy, said that retirement had become imperative due to the growing challenges facing monetary policy formulation and implementation in digital finance in Nigeria.

He assured that the apex bank will continue to address the growing challenges facing the formulation and implementation of monetary policy in Nigeria as this will facilitate access to a diverse range of financial products and credit facilities for the individuals and small, medium and large businesses.

According to the Governor, the global economy is facing stagflation as there is near consensus on the potential of digital finance to boost growth performance amid challenges.

“Although the innovations carry many risks and uncertainties for the sectors, they also present many benefits for positive economic transformation and in particular financial inclusion which has been the main catalyst for inclusive growth, poverty reduction and job creation. Digital financial services are credited with creating 95 million jobs and boosting GDP in emerging economies by 6%.

Digital finance supports greater financial inclusion by enabling the extension of financial services to non-financial sectors and people with minimal access to smart electronic devices,” he said.

According to him, the relevance of central banking and monetary policy in the digital ecosystem is sometimes questioned because regulatory oversight functions are largely eroded or weakened by the failure of traditional tools to perform these functions.