CBN Committed To Sustaining Sanusi's Achievements – Sarah Alade

The acting head of the Central Bank of Nigeria Sarah Alade reassured investors that the removal of the former governor Lamido Sanusi would not change policy to strengthen the economy.

Sanusi was suspended by the President Goodluck last Thursday over allegations of misconduct. He appointed Alade, the CBN's most senior deputy governor.

Alade said on Monday that the changes at the bank "will not affect the monetary policy direction and pursuit of the bank's primary mandate of maintaining price and financial system stability."

Markets in Nigeria reacted negatively to Sanusi's removal, with the naira falling sharply against the US dollar, while most stocks in the banking sector also dipped.

Credit ratings agency Fitch warned in a note that if the sharp sell-off of currency continued, inflationary pressure would increase, raising the possibility of a rise in interest rates next month.

Alade said in an advertisement published in Nigerian newspapers that the CBN had the capacity to meet the demands of foreign exchange users and there were no plans to devalue the currency.

"With the current level of reserves at seven months of imports cover as at end-December 2013, the bank's ability to intervene in the foreign exchange market is not in doubt," she said.

She also promised to sustain single figures inflation and stable exchange rate.

"The bank is committed to sustaining these achievements through the use of appropriate policy tools to ensure price and financial system stability," she said.

Sanusi has rejected the claims against him, believing he was removed for highlighting alleged widespread graft in the oil and gas sector.

President Jonathan told reporters in Abuja on Monday that Sanusi was still the governor of the CBN and that he "could come back tomorrow to continue his work because the issues raised are issues that the board of (the) CBN with the Financial Reporting Council will deal with."
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