The Chief Executive Officer, Global Fleet Group, Mr. Jimoh Ibrahim, has advised the Federal Government to look into the possibility of printing more naira as an urgent solution to the current global financial crisis, and to improve liquidity in the economy.
In a statement made available to our correspondent on Wednesday, Ibrahim said it was better and more cost-effective to print the naira than to deplete the country’s external reserves or support domestic spending through foreign reserves withdrawals.
According to him, even though printing naira notes will lead to inflation, this can be controlled using Treasury Bills to mop up excess liquidity.
But the Central Bank of Nigeria dismissed this as impracticable, saying that the country should be talking about fiscal stimulus at this point in time.
The Deputy Director, Corporate Affairs, CBN, Mr. Festus Odoko, said in a telephone interview with our correspondent on Wednesday that economists would not argue that the country should print naira in the current situation, adding that it was necessary to think through solutions properly.
“If we print money now, how do we use it? The necessary thing at this period is to put money in critical sectors to jumpstart the economy, and it is the government that does these things,” Odoko said.
But Ibrahim said printing naira notes would reduce interest rates and increase liquidity while banks would be well funded to be able to fund companies.
“Properly funded companies will not cut jobs; they will reduce unemployment; they will fund capacity utilisation; and by extension, spending habits will be promoted, which will lead to increased activities at the Nigerian Stock Exchange,” he argued.
Can this work truly? does it make sense to print more money to save the economy, pls share your view with us .WE NEED TO KNOW.