CENTRAL BANKING AND MACROECONOMIC UNDERDEVELOPMENT.PART 1

1.CENTRAL BANKING AND MACROECONOMIC UNDERDEVELOPMENT IN NIGERIA. Central banks worldwide have acquired a toga of sovereignty within their coordinate jurisdiction of sovereign states.They have become most advanced and most powerful institutions of capitalism in any economy.They regulate and oversee the respective economies of the world.The central bank of Nigeria like elsewhere around the world is not an exception,has grown over the years to be an octopus of some sorts and author of macroeconomic underdevelopment. However,it is a common knowledge that she controls and owns more than two thirds of the nation's foreign reserves and surprisingly the central bank of Nigeria as a whole not part of the Nigerian budget.Like in other climes the management of foreign reserves is one of the statutory mandates of the CBN.This is in line with section 2 subsection c of the CBN Act of 2007 that states that the CBN shall"maintain external reserves to safeguard the international value of the legal tender currency".Frankly speaking,that is to defend the value of the naira and I did find it hard to believe that the CBN was working against the very mandate it was supposed to defend.Let us face the fact fully divulged from sentiment or prejudices. On January,28,2013,writing in the pages of Vanguard,late Henry Boyo,popularly known with pseudonym Les leba,in financial vanguard,the seasoned Punch columnist unleashed the bombshell.The central bank director of research Charles Mordi at the ibikabram@gmal.cont.