Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has said the confidence in the naira is “gradually returning”, noting that the apex bank is focused on ensuring stability.
Cardoso disclosed this at the World Bank Nigeria development update, themed, ‘Staying the course: Progress amid pressing challenges’ held in Abuja, yesterday.
“The confidence in the naira is gradually returning as a result of the policies that we are already undertaking, which goes back to the whole issue of orthodox monetary policy, that is really what begins to encourage people to hold onto the naira.
“Over a period of time, we believe that the confidence will continue to go up,” the CBN governor said.
He explained that orthodox policies were implemented to give confidence in the naira, adding that it would also bring trust to the naira.
The CBN governor said the apex bank was making efforts to ensure stability in the exchange rate, which had continued to fluctuate since the unification of the market segment last June.
He said the CBN was focused on ensuring transparency and sanctioning those who would like to take advantage of the market.
He noted that the monetary policies were driving FX inflows which had seen the country’s reserves grow to about $39 billion in October.
MEANWHILE, Cardoso has said that the sharp drop in the value of naira presents an opportunity for the country to boost its exports to other nations.
Speaking at the Nigerian Economic Summit in Abuja, he noted that the naira’s devaluation had made it more competitive for export trade, with many investors already seizing the opportunity.
Cardoso acknowledged that while the situation was not ideal, the current climate offered individuals a chance to identify and pursue investment opportunities.
“What we need now is to ensure that investments are here. Take, for example, now it may seem like a threat in the sense that the exchange rate has come down so low. But that also is an opportunity because what that means is that it can help boost exports. This will make Nigeria a lot more competitive in the export trade. The opportunities are here; it’s not perfect, but definitely, there are opportunities for people to single out and invest.”
He added that with the cost of import here and depreciating naira, exporters and traders would see higher demands for locally made goods and commodities.
In addition, he stressed that the policies of the apex bank were on the right track, adding that the World Bank, global financial institutions, as well as rating agencies, had commended the apex bank’s effort in transforming the economy.
