By Ugo Egbujo
Central banks print money and lend to government and banks.
But did the CBN print money to augment FAAC in March
The clear answer is no.
The Fed in America has printed trillions of dollars sonce last year.
It prnted some to mop sticks and shore up the stock exchange.
It printed some to disburse to citizens to eat.
Has the CBN printed money too recently.
The answer is Yes
All CBN interventions in Agriculture and trade supports are quantitative easing
You can call it money printing. They create naira to lend to help the economy in some circumstances.
Was the CBN expected to create money after COVID?
The answer is Yes.
Can quantitative easing injure rather than help the economy?
The answer is Yes. It causes inflation. But its the job of the CBN to use these devices well to manage the economy
Is Obaseki correct.
The Answer is No.
At FAAC revenues accruing to the federation are declared and shared.
The CBN cant mint money for FAAC. Not without the minister of finance and all governors knowing
Obaseki is mischevous
He wants to cause a run on the naira
I will take that cry from Sowore
Or any other ordinary vigilant citizen
But not a governor
Obaseki is a bonafide member of the National Economic Council.
Obaseki knows most states post COVID are struggling to stay afloat
Let’s assume 60bn was loaned to the fed govt and states to augment MARCH FAAC
Let’s assume he was correct
Would Obaseki rather have workers in his state not be their monthly when revenues fall ?
Would Obaseki rather have the stars retench workers now.
The government removed subsidy
And when fuel prices rose
The public went to war.
We simply asked the CBN to print money to absorb the shock.
Where was Obaseki then?
Perhaps he was looking for his certificate in UI
The petrol subsidy money depletes FAAC massively
Yet he talks glibly like he is in an ugbowo beer parlour.
I agree with the CBN , since Obadeki wants to tighten his belt to suffocation Edo should be made to pay the debts from monthly allocations subsequently.