Wale Edun, the Coordinating Minister for the Economy (CME) and Minister of Finance, stated Tuesday 22 August that the Federal Government intends to reduce the amount of currency in circulation to control inflation.
He claimed that the action was necessary to maintain growing inflation at a level that was both desired and steady.
Edun, who was sworn in as a minister on Monday, remarked while in charge of the Federation Account Allocation Committee (FAAC) meeting in Abuja.
“There should be discipline in money supply to control inflation in the nation’s economy,” the minister told FAAC members.
By emphasing discipline in money supply, the CME Finance minister is referring to the need to carefully regulate the creation and circulation of money in the economy.
On the monetary side, it involves controlling the growth of money supply through various measures, such as adjusting interest rates, open market operations, or setting reserve requirements for banks.