CENTRAL BANKING AND MACROECONOMIC UNDERDEVELOPMENT.PART 2

2.CENTRAL BANKING AND MACROECONOMIC UNDERDEVELOPMENT IN NIGERIA. At the save Nigeria group Forum Lagos noted"CBN owns $30b. out of the total reserve of $43b. "during the period. This is not our bone of contention ad it does not really matter whether it owns it 100%,80% or not but what it does with the money and how it handles monetary policy to the betterment of the economy at large is what really matters.Any attempt to do otherwise is tantamount to macroeconomic underdevelopment.It is obvious no President since democratic transition in May 1999 has contravened this CBN act of forex management . Other functions and uses of the foreign reserves include the settlement of both public and private foreign currency obligation of Nigeria,in the importation finance for vital goods like power.For instance,a ministry or agency of government needs foreign exchange for external expenditure such as payment of goods and services,settlement of external debt services and a host of other,it must provide naira equivalent to the CBN before the apex bank sells required foreign currency. It does not seem to hold waters to justify the persistent wanton nature of the apex bank verdict and hazy approach at forex method. In the same article entitled "Central Bank 's Lion Share Of Foreign Reserves"published on page 48, Monday, Mordi further explained and I quote Les Leba, who brokered reported truce separated from fallacy:....that since the CBN had paid constitutional beneficiaries naira