Central Bank of Nigeria Commits to Stabilizing Naira Amid Market Challenges
Olayemi Cardoso, Governor of the Central Bank of Nigeria, has underscored the apex bank’s commitment to bolstering the nation’s external reserves. He expressed support for measures such as the proposed Eurobond issue by the Federal Government, emphasizing the need for diversification in funding sources beyond relying solely on the Eurobond market and foreign portfolio investors.
He further noted that, the CBN is satisfied with its efforts to stabilize the naira, suggesting that excessive volatility may be subsiding while acknowledging the challenges faced and highlighting the CBN’s vigilance in optimizing market operations to achieve favorable outcomes and reviving investor confidence in the naira is pivotal for attracting investments into Nigeria.
“I do believe that we have more or less seen the worst in terms of volatility.
“We are also very alive to observing the way and manner in which that market operates and ensuring that it gives the best value that that can be accomplished using certain tools,” he said.
Meanwhile, Cardoso detailed significant policy actions taken by the CBN since his tenure I n September, including multiple interest rate hikes to 26.25 percent , clearance of foreign exchange backlogs, and reforms in exchange rate policies that have led to the devaluation of the naira.
Although, the naira has stabilized recently, trading within a narrow range of N1,473 to N1,490 per dollar in the past month, albeit falling slightly to N1,492.71 against the dollar on Tuesday.
“We’re relatively pleased with where we are,” Cardoso said. Even so, he said the central bank needs to do more. “It’s continuous work in progress. And we will do everything possible to ensure that we continue to manage the macroeconomic fundamentals that affect that.”
