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Govt to curb rising inflation with ‘cut in money supply’

The Federal Government plans to cut the cash in circulation to rein in inflation, Minister of Finance and Coordinating Minister for the Economy (CME), Wale Edun, hinted on Tuesday.

He said the measure became imperative to keep rising inflation at a desirable and stable level.

Edun, who was inaugurated on Monday as minister, spoke in Abuja while chairing the Federation Account Allocation Committee (FAAC) meeting.

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.

On the Fiscal side, caution will be required on how the federal, state and local governments disburse money.

By maintaining discipline in money supply, the government aims to keep inflation within a target range that is conducive to stable economic growth and price stability.

The finance minister also noted that there was the need for government to mobilise resources to deliver on its mandate to increase employment and reduce poverty.

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