Malam Sanusi Lamido Sanusi, CBN Governor, said in Abuja on Tuesday that the economic scene had turned out better than was projected about six months ago.Â
The CBN governor said this during the review of the outcome of the Monetary Policy Committee on domestic and external economic and financial developments for the year 2009. â€œDeveloped countries that were most adversely affected by the severe economic and financial crises have shown some signs of improvement in terms of output.
There are also concerns over the high unemployment rates in these economies,â€ he said. However, Sanusi said questions remained on the durability and sustainability of the recovery. According to him, the financial sector has been stabilised and measures are being taken to monitor and regulate it. â€œThe prices of primary commodities including crude oil have risen largely due to the fiscal and monetary stimulus and on news of economic recovery. The rise in commodity prices, however, has given concerns about resurgence of inflation in the near future. Emerging countries on their part have registered fairly good growth rates and are poised to make further gains in 2010.
The main concern in the international economy relates to the robustness of the recovery and the possibility of the incipient inflationary tendencies,â€â€ he noted. The committee reviewed the domestic economic development bearing in mind the evolving international economic and financial situation. Sanusi also said that the review underscored the need to strengthen the ongoing efforts at working out economic policies.
He said in October, excess reserves of banks with CBN were high with the average daily excess reserves exceeding the average in any of the preceding four months of the year. â€œSome banks took recourse to standing deposit facilities with sharp increase since the middle of the month. No bank accessed the standing lending facilities during the same period,â€ Sanusi added.