CBN makes the right call

 

Against the fear that the Central Bank of Nigeria wants to float higher denomination currencies, the right call has emanated from the CBN.

Briefing Newsmen after the most recent Bankers' Committee meeting, the

CBN Governor, Godwin Emefiele says going forward the CBN would release less of N500 and N1000 notes and more of the lower denominations.

This according to him is in tandem with what happens in the UK where people hardly spend 50 pounds but mostly 20 pounds.

I recall my consternation when the CBN released N1000 notes after floating a cashless policy.

Now the right noises are being made. This will further reinforce our cashless policy.

With a thriving cashless policy, it becomes possible to monitor money in circulation and introduce the right monetary policies into our economy.

The right call has been made but implementation should be above the demands of the political class.

I recall, the confirmation briefing of the CBN Governor on the floor of the Senate and his response to their question that he would be in office at the beck and call of the politicians.

That may have been the right call but it robbed the CBN Governor of any pretence to a preference for principle on the altar of job security.

There is a saying that he is no man that cannot say no! Politicians will always be politicians but in society there is Division of Labour, technocrats like the CBN Governor should be ready and willing to lead the politicians where they are not versed.

At the end of the day policy making would always be tied to specific offices and that of the CBN Governor like Alan Greenspan of the US of yore is sacrosanct.