Dr. Olayemi Cardoso, the governor of the Central Bank of Nigeria (CBN), says the apex bank is pleased with the progress it has made so far in sustaining the naira rate.
Cardoso said in an interview with Bloomberg TV on Tuesday: “I do believe that we have more or less seen the worst in terms of volatility.”
The apex bank chief said the financial regulator will continue to work hard to sustain the nation’s currency, adding that it is a work in progress.
“I do believe that we have more or less seen the worst in terms of volatility,
“We also closely monitor the market’s operations to ensure that it provides the best value possible through the use of specific tools. We are relatively pleased with where we are.”
According to Cardoso, restoring and strengthening the naira’s value will attract investors and set Nigeria on the path to achieving its economic targets of $4 trillion by the end of the decade 2030.
He also said the central bank needs to do more, adding that “it’s a continuous work in progress.”
“And we will do everything possible to ensure that we continue to manage the macroeconomic fundamentals that affect that,” he assured.
The naira has been trading in a narrow range between N1,473 and N1,490 per dollar at the official market since the beginning of June, Persecondnews observes.
However, the naira fell to N1,500/$ on Tuesday from N1,488 traded on June 24.
Cardoso said: “In the past 2–3 weeks, after a period of volatility, we have seen a lot of stability in the markets. The rates have been matched, and right now we have more or less one rate.
“This is good; it allows companies to plan, and it gives an idea of where the potential road of travel is for people who are investing in our economy.”
In terms of liquidity, he said the apex bank has seen an increase in the first quarter of the year, which has resulted in a total inflow of about $24 billion, about 40 to 50% more than the quarters up to about 2021.
“Clearly, it is having a positive impact. We believe that continuing on this trajectory will see this liquidity continue to flow,” he said.
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