The Director, of the Centre for Promotion of Private Enterprise, Muda Yusuf, has noted that CBN was creating a lot of problems for the economy rather than solving them.
He made the statement while reacting to the issue of banks increasing interest rates on existing loans.
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The changes followed the recent CBN increase in interest rate by 100 basis points to 16.5 percent.
Yusuf said “what Godwin Emefiele is after is to tighten monetary policy to reduce inflation and maybe reduce exchange rate. But as far as allowing market forces to determine the exchange rate, which is what many of us stand for, Emefiele is not ready for that.
“What he is doing is continuing to increase the interest rate, with the hope it will curb inflation and improve the Dollar exchange rate.
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“He is not interested in allowing market forces to determine the rates. He is interested in allocating Dollars. Only God knows what criteria they are using to allocate foreign exchange. We have left the CBN and their principal to that.
“But we know that he is creating many problems for this economy, a very big problem. But that is the model he believes,” said the former Director General of the Lagos Chamber of Commerce and Industry (LCCI).
