The Governor, Central Bank of Nigeria, CBN, Godwin Emefiele, has said that the Monetary Policy Committee will chart a new course for an improved monetary policy and CBN that will provide direction for monetary policy in Nigeria.
Thank you for reading this post, don't forget to subscribe!
The governor said this at a Monetary Policy Committee, MPC, Strategic Retreat in Lakowe, Ibeju-Lekki in Lagos on Friday.
The theme of the retreat was “Monetary Policy Implementation in a Digitally-Evolving Developing Economy.”
Mr Emefiele said that technology and innovation was playing a major role in output growth and economic development in Nigeria, hence the need to explore new ways of adapting monetary policy tools to improving the contribution of technology and innovations to the growth equation.
He said that monetary policy had been severely challenged, as its policy space narrowed significantly, in some cases, paradoxically and necessitating the need to rethink monetary policy in the context of emerging challenges and economic transformation.
The evolution of FinTechs, Cryptocurrencies, Digital Payments, Artificial Intelligence and Machine Learning, have changed the functioning of the financial and banking sectors, both globally and domestically.
“Therefore, the urgent call for the need to rethink financial system regulation, supervision and monetary policy implementation,’’ the CBN governor said.
According to Mr Emefiele, whereas, innovations come with lot of risks and uncertainties for the sectors, they also have many benefits for positive economic transformation, particularly, financial inclusion which has been the principal catalyst for inclusive growth, poverty reduction and employment generation.