CBN temporarily withdraws policy guidelines amid media misrepresentation
The Central Bank of Nigeria has announced the temporary withdrawal of its Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for Fiscal Years 2024-2025.This decision follows widespread media misrepresentations that have caused confusion among stakeholders.
This was announced in a statement on the CBN's website on Friday.
According to the statement, the CBN is concerned that certain aspects of the guidelines have been misreported, causing confusion among stakeholders.
The withdrawal aims to clear up any misunderstandings and ensure accurate communication about the bank's policies.
The CBN clarified that the recently withdrawn Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines had been misinterpreted by some media outlets as new policies.
In reality, the guidelines compile previously issued policies and directives, effective until December 31, 202.
The CBN emphasised that these guidelines are an important reference for stakeholders, ensuring clarity in understanding existing policies and providing a framework for conflict resolution.
However, the CBN stated that some of the policies mentioned in the guidelines have been revised or replaced by newer updates, causing confusion.
The statement read, "The Central Bank of Nigeria (CBN) has been alerted to certain instances of misinterpretation or misrepresentation of its biennial publication on Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines, published on September 17, 2024." In response, the CBN has temporarily withdrawn the document to reduce the risk of further misrepresentation.
"As is stated explicitly in the document to guide stakeholders, the CBN reiterates that the publication is a compilation of previously issued policies and guidelines issued by the Bank up to a cut-off date, typically December 31 of the relevant year."
The apex bank emphasised that changes to the Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines could be made without prior notice to reflect emerging developments in the domestic and global economies. To inform stakeholders, the CBN will issue supplementary circulars to announce any such changes.
The CBN chastised media reports for incorrectly linking certain aspects of the recently withdrawn guidelines, such as the suspended Cyber Security Levy, and misinterpretations of the removal of fuel subsidies to external reserves.
The bank clarified that the claims were based on outdated or incorrect interpretations. Furthermore, the bank stated that recent changes to its policies, including those affecting the naira exchange rate, have significantly revised some previous positions outlined in the guidelines.
The apex bank stated: "As a compendium of previously issued policies and guidelines, the provisions are applicable only to the extent that the guidelines and policies contained therein have not been updated or revised." This is explicitly stated in the document to provide guidance to stakeholders.
"In line with previous editions, the most recent publication (January 2024) contains policies and guidelines issued by the Bank through December 31, 2023, some of which will remain relevant during the period 2024-2025. However, several others may no longer apply due to revisions or updates that become effective after its publication."
To avoid further confusion, the CBN urged stakeholders and media outlets to seek direct clarification from the bank before publishing any reports.
It reaffirmed its commitment to providing clear and consistent monetary policy guidance to support the Nigerian economy, emphasising the importance of accurate communication in fostering understanding of its policies and initiatives.
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