Godwin Emefiele took over today as governor of the central bank in Nigeria, seeking to ward off pressure to devalue the currency of Africa’s largest economy and keep inflation under control.
Emefiele, 52, replaced Lamido Sanusi, who was suspended in February by President Goodluck Jonathan for alleged financial wrongdoing, claims that Sanusi denies.
A former chief executive officer of Lagos-based Zenith Bank Plc, Emefiele has pledged to maintain stability in the naira even as a slump in foreign-currency reserves limits the central bank’s ability to uphold the currency peg. While Emefiele has said devaluation will be “devastating” for the economy, investors have increased bets the bank will lower the midpoint of the currency peg from 155 per dollar.
The bank is “likely to maintain naira stability as the overriding priority ahead of February 2015 elections,” Philippe de Pontet, Africa director at New York-based Eurasia Group, said in an e-mailed note to clients.
The naira has dropped 1.4 percent against the dollar on the interbank market this year and was trading at 162.30 as of 12:47 p.m. in Lagos today. MTN Group, Africa’s largest phone operator, said last month the naira will probably be devalued after the election.
Emefiele will hold his first press conference as governor at 10 a.m. local time on June 5, the Abuja-based central bank said in a statement on its website today.