Nigeria’s central bank will preserve policy continuity and its inflation focus even with the removal of its governor Lamido Sanusi by the country’s president, a member of the monetary policy committee said.

Turmoil in the markets since the decision was announced yesterday is an over-reaction “to the circumstances on the ground,” Doyin Salami said on a conference call with reporters and investors today. The naira plunged to a record low against the dollar and the stock exchange fell to the weakest level in three months. The currency traded at 166.25 per dollar by 10:43 a.m. in the commercial capital of Lagos, the lowest since at least 1999, according to data compiled by Bloomberg.

“The central bank has been, in my judgment at least, very responsible in how it has weighted its judgments and made its choices and I don’t see any reason now, or in the future, that that stance will change,” said Salami. Nothing has “changed fundamentally for Nigeria,” he said.

Under Sanusi’s watch, the central bank had become “distracted” from its core mandate, according to a statement from President Goodluck Jonathan’s office yesterday. Jonathan named Sanusi’s deputy, Sarah Alade, as acting governor and has nominated Zenith Bank Plc Chief Executive Officer Godwin Emefiele to be the next governor.

Source: Bloomberg (by Emele Onu)