The former Central Bank Governor was controversially suspended four months to the end of his five year tenure by the Federal Government on allegations of misappropriation of funds and financial recklessness.
The analyst also proposed that there should be greater coordination between the
"The Monetary Policy Composition remains intact and institutionalized. The level of discourse will be unadulterated. The line in the sand for currency adjustment will be approximately
"MPC kicked the can down the road for the new Governor. The status quo was maintained when they could have adjusted the naira downwards. Alternatively, they could have tightened the Cash Reserve Ratio some more. Now the chickens are coming home to roost. Monetary conditions call for a change strategically or tactically, but definitely not status quo" he said.
Liquidity tightening anticipated
Despite MPC's maintaining monetary policy's status-quo at its last meeting, Afrinvest, an investment and research financial institution, said some liquidity tightening is expected from the apex body in the near future.
"We are convinced that considering the current level of success achieved with the hawkish stance of the previous Central Bank Governor and the likely political and economic headwinds, he may choose to sustain these policies to ensure these gains are maintained.
"In view of the 2015 campaign spending, we anticipate further liquidity tightening by an additional increase in the CRR on public sector deposit to 100.0 per cent before the end of 2014 and a subsequent reduction post the 2015 election.
"In addition, the gradual depletion of the reserves (from
"In addition, in view of further stimulus tapering in the U.S. and the expected end to Quantitative Easing (QE) in
"Moreover, we expect the present cashless policy may be extended to accommodate dollar and foreign currencies transactions such that foreign currency payment can only be made for smaller amount with all informal payments in foreign currencies reduced. Lastly, we would expect a more collaborative economic policy between the fiscal and monetary authorities," the firm said.
"The new Governor is vastly experienced in finance. He is reserved, cautious and methodical. Eurasia describes him as not subservient or self-censoring,"
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