CBN New Governor Reveals Plans for Naira As Dollar Exchange Rate Hit N1000
Lagos, Nigeria – In a recent appearance before the Senate, Olayemi Cardoso, the newly nominated Central Bank of Nigeria (CBN) governor by President Bola Tinubu, unveiled his comprehensive plans to tackle the challenges plaguing the Naira in the foreign exchange markets. Cardoso expressed his commitment to implementing both short-term and medium-term strategies aimed at achieving a stable exchange rate for the Naira, addressing issues such as the widening gap in the foreign exchange market and dollar shortages.
A Call for Stability
Cardoso’s passionate plea for a stable exchange rate underscored the urgency of the situation. He emphasized the critical importance of a stable exchange rate in realizing the nation’s aspirations. He stated, “A stable exchange rate is possible, and we will implement short-term and medium-term measures to achieve this goal.”
Clearing FX Backlogs
One of Cardoso’s immediate actions will be to address the foreign exchange (FX) backlog, regardless of the amount. He recognizes the significance of clearing backlogs of forex obligations, particularly those involving foreign companies seeking to repatriate their earnings. He stated, “We are aware of pending obligations, and our immediate priority is to verify their authenticity and promptly address them. It would be naive for us to expect progress without addressing this aspect of the foreign exchange market.”
Prioritizing Price Stability
Cardoso also emphasized his commitment to maintaining price stability, a cornerstone of a healthy economy. He plans to revert to evidence-based monetary policies, departing from some of his predecessor’s unorthodox approaches, in an effort to bolster the Naira currency. He stated, “In the short term, we intend to implement a transparent system accessible to everyone to attract foreign investors. We also need to ensure that our guidelines are open, transparent, and easily understood by all stakeholders.”
Attracting Foreign Investment
Cardoso believes that transparency and openness are key to attracting foreign investors and portfolio investors. He stressed the importance of involving relevant stakeholders in the development of these guidelines. He asserted, “I believe this will significantly contribute to restoring confidence in the Nigerian economy and attract foreign investors interested in doing business in Nigeria.”
A Commitment to Integrity
In closing, Cardoso reassured the Senate and the nation that he intends to uphold the highest standards of integrity. He pledged not to compromise his principles to favor any individual or group to the detriment of others.
As Olayemi Cardoso assumes the role of the new CBN governor, Nigerians and the international community will be watching closely to see how his vision and plans unfold, and whether they bring the much-needed stability to the Naira and the Nigerian economy as a whole.
