Former Presidential Affairs Minister and Civil Service Boos, Momodou Sabally has stated that the Governor of the Central Bank should do better than a mere percentage point increase in the policy rate given the current economic realities of the country.
In a post on his Facebook page Sabally also insinuated that the Central Bank should consider revising their decision to stop depositors from withdrawing dollars from their foreign currency accounts.
Here’s the full post Sabally made earlier this morning:
And also the Central Bank Governor should stop playing to the gallery and come up with serious and tangible proposals for the resolution of our current macroeconomic meltdown.
Given the supply side realities and inherent structural rigidities in this sclerotic system, an increase of 1 percent in the policy rate is tantamount to window dressing
Since the Governor had decided to enmesh himself with fiscal authorities in unleashing their malignant fiscal transgressions during the past electoral cycle, he need to join them in cleaning up the mess that they created together…
The current ‘seizure’ of depositors’ dollars may have been done with good intentions; but the Central Bank’s directive has a debilitating effect on the economy.
Therefore, I cannot understand why my friend Nyang Njie was praising this government for such a disingenuous move.
My analysis of the freeze on dollar withdrawals has led me to a similar conclusion of what the theory of price ceilings teaches us in economics…
The exchange rate depreciation is getting worse; the rates are definitely higher than the published market rates and there is obvious hoarding of the already scarce supply of forex in the market.
This is sure to create supply constraints in the market for essential commodities.
#KanaSong #Barrowflation