Current governor of the CBN Olayemi Cardoso had said the bank would return to its primary role of price stability.
Acknowledging that the central bank can use different instruments to mop up excess money in circulation, Sanusi said it needs to do it in a manner that minimizes the cost to both the central bank and the government’s balance sheet, and that’s why it has to rely a little more on non-conventional instruments.
“If you look at OMO Bills and OBB rates in the last few weeks, I can see that the central bank has started a process of aggressive tightening. OBB rates are beginning to approach what they should be.
“And I think that’s what the market needs to look at; that the central bank is taking this role of tightening money and fighting inflation as a primary focus,” he stated at the event.
He urged the audience to show understanding with the fact that those new monetary policies take time to manifest.
“For the short term, I don’t think we have a problem. I think the central bank is doing the right thing – tightening money, clearing the backlog, trying to fund the market, and I think we will have stability.”
Earlier, CBN’s director in charge of the research department, Dr Omolara Duke, who represented Cardoso at the event said: “The Ways and Means will no longer be more than five percent, going forward. The period for the government to access Ways and Means is over.”
She also disclosed that the central bank is looking at how to drive down the cost of remittances to increase the inflow and move them away from the informal sector into the formal.
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