CENTRAL BANKING AND MACROECONOMIC UNDERDEVELOPMENT.PART 14G

14g.CENTRAL BANKING. Price Stability and Exchange Rate Sustainability. Ever since 2002,when the central bank initiated guidelines for long term lending an also convergence of various markets through interbank foreign exchange market(IFEM) policy.Strategic inputs were made by the Bankers committee especially its subcommittee on fiscal and monetary policy and the opinion was that to CBN there was no parallel market.Unfortunately over the years speaking with double mouth it has encouraged them.Imagine,yet the apex bank was auctioning the dollars,funding the Bureau de charge and encouraging arbitraging activities that fueled capital flight and currency erosion.Blatant liar!So,one is not surprised it has failed in almost all operating measures introduced for two decades including banks recapitalization. Exchange rate being the relative price of different national currencies is determined by market forces driving stocks of national monies on the foreign exchange market worldwide.In general,it reflects the underlying health of the economy and also economic fundamentals of forex market forces,inflation rate, unemployment rate,market psychology and balance of payment position.This does not exclude sociopolitical factors and other factors earlier mentioned.This includes periodical worsening liquidity overhang spurred by excessive monetization of petrodollars earnings,uncoordinated bouts of fiscal expansion. Consequently,broad and narrow measures of the money supply (M1) and (M2),

CENTRAL BANKING AND MACROECONOMIC UNDERDEVELOPMENT.PART 14F

and decisions of appropriate exchange rate regime finding the actual exchange rate levels which though of course may vary slightly beyond some limits over the course of time.Frankly speaking there is a mismatch of policy between monetary and fiscal policy, tto defeat the overall policy objectives.Precisely the former focuses on almost exclusively on demand management strategy with intent to curb price increases or check mate inflation,whereas the latter in a volatile terrain like Nigeria indulges in fiscal indiscipline and cannot be easily synchronized with its ideal framework of fiscal stance that focuses on cost containment,production promotion target,real sector productivity and mass investment as well as enhancements of job creation opportunities.Unrestrained spending and uncoordinated release of funds under the pretense of economic reconstruction decimated the financial system over the years. The apex bank is invariably quite more complacent with exchange rate demand management approach rather than ensuring egalitarian monetary policy over a given period to alleviate pains of the real sector and its policy shift perenially favours artificial defense of the naira.The challenge of rate and forex market convergence unarguably is the biggest nightmare of successive administrations.

SONNET14

S.14.frenetic velocity crescendoed fifty yards from the humus trenches.His mnemonics not flogging a dead horse at nocturnal bent, his fluttering feet,in flustering volteface outpaced him to his household to bell the cat.The house stood on a tremor fog and eugenic teen sped ethereal blue sky away,vanishing from the forest array of eucalyptus trees.A yard away from home's Window pane whereon his partriarch was engulfed with sentry of blue seas,etched himself to the flintfooted etiquette."Fifth columnists,pirates from the north country,pirates from the Arabia flipped into the forest like a flint"tremor belched."Gash!You flibertigibet,dont be so flipping rude boy"a flip remarks, flimsy gaunt flung upon his trembling hands and gushing feet flicking."Oh am not playful nor flighty, snippet is crystal.They flew in fortnightly with caravans.Cabalise espionage not with the halfcocked grip mounted at halfcock.Deploy snippet at nocturnal hours counterclockwise to eavesdrop the raging inferno and the flank in tactical fission."Now refrained to send him away with flea in his ears nor yet his flammel refuted."So discreet!You the flatfooted flatspin,at sunset,with your accoutrement,my flambeau,stonemason,rolling stone,like a stoolie,a stool pigeon, be my stooge to quash the stormy cloud.Retrovert to my muse,your hallowed shell.On the morrow,'gins to gallantry, before the sun goes down."clouds of pulses upon his tendons waned at his slippery exit for the bedtime. As like eyeball to eyeball

SONNET 9

S.9.The voyeaur waddles his vulgarianfraction like a vulpine,waffling and wacky,waggery and wagging to voyeauristically wager his bet on whoremasters.A wallopping wanderlust of the mud wallow.A well hung, a well groomed,well intentioned and a well knitt and not well heeled and well lined but wet dreamt and well oiled,hustling whispering campaign as pastime at the watercourses.Bounteaous passion for whaling,his whirligig whereon he whoops holistic whirlpool,a whippersnapper and a dapper.He churns sarcastically a whippingboy even when whined and whiplashed his unruly whiphand at whimpering distance.Like a wildfire,hunting wildfowls themselves like his ilks wildfowled wildgoose chase rottened with damned sow of wild oats and here a reproach to this ilks willy nilly,his idiosyncrasies took a wigging.And to checkered antecedence,dutifully windowdressed him, hid wimpled windingsheet willowy or not,tilting at windmills.This parody could be windowshade to historians but not to windbroken historicists.The bimbolike wankering wight,like the renegades ,windward and windswept,marooned in a windstorm, hanging like walrus moustache,wine,women and song.The vixenish spouses at nuptial knots condescended himat alehouses and bartenders clung to their winchesters of maddening rants,videlicet the volteface of the bard's bibliophiliac libido.A viscous visage of vituperative pedigree argues him viva voce,a vitriolic hell still to vociferate not with shrinking violet, staunchly held to

CENTRAL BANKING AND MACROECONOMIC UNDERDEVELOPMENT.PART 18

Nobody would buy those refineries the way they presently constituted,unless you put them right.The cost of putting them right is quite expensive and enough to nuild the new refineries. ? Hence it is cheaper to construct new refineries that the the cost preparing the refineries for privatization. Government knows unless they are working properly nobody would buy the refineries, due to cost and latest advancement in technology.To stop wasting money,on the white elephant project,the best option should be to auction them . Deregulation should come phases, first temporary importation of crude to alleviate problem of scarcity, two, licenses should be granted for construction of cottage refineries rather than than squander destiny of a nation in the hands of few oligarchs.The challenges of deregulation is also major problem affecting directly or indirectly the forex market due to our import dependent economy and cannot be excluded from the influence of macroeconomic policy.This inordinately affects naira exchange.

BUSTLE ADO.PART1

Now she stroke his brialliantine that she brouhaha,And gins to brownstudy,bruit abroad and brunching brunches to couch himself upon the brunette's lap to brunt the alight of the day's bubble, bustle ado himself. Bubbly bubbly,brush him off the broad couch as the weeping morn sleeping dusk becomes.On the morrow bustle ado himself out of the caesura of the emotive calaboose,the fugacious callow again belabour the cauldron of cacophonous toiling strife.Here comes and sits where the vulgarian fractions'captive audience hisses,the gallery players,coyed by medley's castigate doth he dance,Catholic winces shot as gregarious bandwagon jump,certificate of the dungeon,sometimes shuttles through cavernous voyage as cat's paw Cat's eye,Cerebrum in serfdom,cephalic in servitude,this squander seething seizeth him coarse on his sweating palm.Doth he pleads with trembling passion pithy precedence at the sentry of chanticleer,the charter of the fleeting fury?Now at dotage ilks themselves, charioteers,charlatans as chaperons in ambush guiltless bemoan,in rigmarole the circadian circus of the civvy street. He burns himself hoarse,doth he quench,himself with windy sigh and cheapjack immodest feet and cheeseparing not grin him like a Cheshire cat.He biten his cherry and behold how his cherry bites,a chimera of chunky pure shame retreats,which bred more bites in the vapourous ducks.So,offers she the cinderella at the cipher of cinches,to quash him religious relief,whereon civvies

CENTRAL BANKING AND MACROECONOMIC UNDERDEVELOPMENT.PART 16

allows for more competition and eventually price crashes.When you create the competition, people can go to the cheaper market,to buy fuel whether from NNPC station or private stations. Note that this arrangement is a short time arrangements because with the current exchange the landing cost will be high that will affect the daily pump price and monumental crisis will persist.Our country in the first instance,has no business importing fuel, given our vast potential and importation should be an interim measures.The first step to transparent deregulation should be to privitise the public refineries and enabled them to work effectively. Infact to be candid the government refineries are outdated cannot even produce efficiently. Technology has advanced and we now have cottage refineries and modular refineries and so forth.You can get cottage refineries with just 5m.or 10m.dollars to serve towns and cities.Why cant they support local governments ready to own their refineries?Yet they refused such mode of transparent deregulation.Many of these models should be allowed and not ideal to rely on Dangote Lagos refineries with estimated 650,000 bpd, when we fail to patronise state and local government based refineries alongside many private modular or cottage refineries.So, we should have not less than 1,000 cottage refineries.Why granting monopoly to one person to strangulate our destiny? We know that it is naturally expedient for us to refine here.So if you refine

CENTRAL BANKING AND MACROECONOMIC UNDERDEVELOPMENT.PART 15

The issue of floating and petroleum market deregulating are also extremely related.These issues are control based.It requires government to know what to control and what they ought not to.Nigerians tend misrepresent the issue of deregulation and when government brought out the issue of deregulation the inference drawn from average Nigerians is price increase.So,anytime government talk about it,it tends to approximates price and I dont think they do understand what deregulation is all about.But if they do,will applaud government specifically when it decides to do it right and we cannot exonerate government from this distortion. Whereas the true meaning of competition is to introduce cometition so that everyone not just multinationals and independent oil companies can import fuel and we dont have to rely on NNPC alone.That is to say as far as they meet specifications,they can be granted license to import. This brings price down due to cutthroat competition and sellers will be at cost plus margin.Meanwhile now that we rely on NNPC to bring in fuel and we claim to enjoy subsidy,we are paying for corruption and inefficiency and fraud.What a bigger price to pay!We end up in the black market as the grand last resort. They simply mismanaged the process and poor communication results due to misinformation of the process.That is why NLC over the years has fought government over subsidy fraud.Hence,deregulation is not equivalent of price increase because it

CENTRAL BANKING AND MACROECONOMIC UNDERDEVELOPMENT.PART 13

13.CENTRAL BANKING. and is also driven by demand of consumers ability to even borrow naira.This has to do more with the peoples'access to bank funding,rather than being related to earning ability per capita.Exchange rate adjustment measure or indicators that control demand is what is invariably adjusted.The essence of monetary policy to raise rate higher is to discourage demand same with fiscal controls. The controls are haphazardly applied to encourage the differentials in the two markets.It is unfortunate that despite other countries that apply these controls,they barely have this differentials.A highly unproductive situation people getting richer for doing nothing created a loophole for some people to benefit from,moving money from official market to parallel market profiting from selfish margin and consequently plummeting the value of local currency. Inasmuch as it is expedient to try and boost the manufacturing sector,we should make do with what we have presently. When we float the naira and stop controling forex market,the deregulated foreign exchange will be a great boost to real sector.We can't avoid this option and to do so can be likened to postponing the evil days.Every time we control a common item say rice or cement or so to say importers should get import licence to import, and you heighten the smuggling problems on the other side or you sell cement at fixed price.This is unprofitable as we are only magnifying the problems associated with control