FG, CBN sign deal to tackle inflation, debt, forex
The Federal Government and the Central Bank of Nigeria have signed a deal to coordinate policies on inflation, debt, and forex management. Read More: https://punchng.com/fg-cbn-sign-deal-to-tackle-inflation-debt-forex/
The Federal Government and the Central Bank of Nigeria (CBN) have signed an agreement to improve coordination on key economic issues such as inflation, public debt, and foreign exchange management. The Memorandum of Understanding (MoU) was signed in Abuja and formalizes a framework for collaboration without compromising the CBN's independence.
CBN Governor Olayemi Cardoso emphasized that the agreement would enhance cooperation in areas like government cash management, debt issuance, liquidity forecasting, and policy consultations. The minister of finance, Taiwo Oyedele, reiterated that the agreement would prevent fiscal and monetary policies from going in different directions, without undermining the CBN's autonomy.
The agreement is particularly significant as Nigeria moves towards an inflation-targeting framework, requiring a supportive fiscal environment alongside effective monetary policy. Both institutions will share data on cash positions, financing plans, credit growth, and foreign exchange flows more efficiently, with the CBN Deputy Governor, Dr. Muhammad Abdullahi, stressing that coordination is essential amid global economic uncertainty and geopolitical tensions.
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