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We printed more money to save banks, says CBN

The Central Bank of Nigeria (CBN) disclosed last weekend that it had printed more naira, in response to the nation’s economic and financial crises and in line with last year’s suggestion by economist and Group Managing Director of Global Fleet Group, Barrister Jimoh Ibrahim.

Responding to a question at a Town Hall meeting with stakeholders in London on how the Central Bank of Nigeria (CBN) sourced the N420 Billion it recently injected into five banks in the country, CBN Governor Sanusi Lamido Sanusi said: “We printed money.

We created an asset on the balance sheet basically to pump money into the system because money supply had been negative in the first half of the year.  We did not borrow money.”

The Global Fleet chief had in July last year while reacting to the global economic meltdown suggested that the banking watchdog should print more naira. The suggestion was widely criticized and allegedly discarded by CBN under its immediate past governor, Prof. Chukwuma Soludo.

But now, according to Ibrahim, the new CBN governor has “followed the advice and unknown to many, it has quietly gone underground to print more naira.”


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