In a recent statement, Dr. Olayemi Cardoso, the Governor of the CBN Clarifies, made it clear that the intention of the apex bank is not to defend the naira. He expressed his anticipation for a time when the central bank will no longer support the currency.
Dr. Cardoso shared these remarks during his participation in the Governor Talks session titled “Nigeria: Catalysing Change – Reforming Monetary Policy in Nigeria” at the ongoing 2024 Spring Meetings of the International Monetary Fund/World Bank. He emphasized that the recent depletion of reserves should not be attributed to the central bank’s defense of the naira.
On Wednesday, the naira exhibited some strength as it appreciated at the Nigeria Autonomous Foreign Exchange Market (NAFEM), closing at a rate of N1072.74 to the dollar in the official foreign exchange market. However, the value of the local currency continued to fluctuate at the parallel market, closing at N1,140 to the dollar on the streets.
When questioned about the central bank’s defense of the naira, CBN Clarifies the bank’s stance, stating, “I want to make this as clear as possible. It is not our intention to defend the naira.” He also addressed various opinions circulating in recent days regarding the state of reserves and the central bank’s role in protecting the currency.
Dr. Cardoso’s statement sheds light on the central bank’s perspective and approach towards the naira. It indicates a shift in focus and hints at a future where the central bank may adopt alternative strategies regarding the currency. These remarks contribute to the ongoing discussions surrounding Nigeria’s monetary policy and the role of the central bank in managing the country’s currency.
