I can understand the frustration of Central Bank of Nigeria, that seems to have found itself in the place of a medical doctor whose medicine isn’t working or at least not significantly.
So, in trying to appear as doing something, the CBN keeps increasing monetary policy rates, the internationally known textbook tool for fighting inflation, which of late, has embarrassed some central bank Monetary Policy Committees in Africa, one meeting at a time.
Without effective African industrialization strategy, much of African inflation will remain uncontrollable. I believe that something promising is already being done in this regard, but more need to be done.
For now, whoever manages the Dollar, holds the key to inflation in import-heavy Africa”.
Image by Freepik.
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