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Yemi Cardoso: Positive Results from CBN’s Efforts

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Yemi Cardoso

The Central Bank of Nigeria has announced that its endeavors are starting to produce fruitful outcomes in alleviating the economic situation in the country.

Olayemi Cardoso, the governor of the apex bank, shared this information on Friday during his appearance with the economic team before the Senate Committee on Finance, Banking, Insurance, and Financial Institutions.

The Senate had summoned the economic team comprising the CBN governor, Minister of Finance Wale Edun, Minister of Budget and Economic Planning Atiku Bagudu, and Minister of Agriculture Abubakar Kyari, to address the current economic situation, particularly the depreciation of the Naira and the surge in food prices.

When discussing the Naira’s decline, Cardoso stated, “Distinguished Senators, these measures, aimed at ensuring a more market-oriented mechanism for exchange rate determination, will boost foreign exchange inflows, stabilize the exchange rate, and minimize its pass-through to domestic inflation.

“Indeed, they have already started yielding early results with significant interest from Foreign Portfolio Investors (FPIs) that have already begun to supply the much-needed foreign exchange to the economy.

“For example, upwards of $1 billion in the last few days came in to subscribe to the Nigeria Treasury Bill auction of 1 trillion Naira which saw an oversubscription earlier this week.

He further added, “Our measures aimed at improving USD supply into the Nigerian economy have significant potential in taming the volatility of the exchange rates. However, for these measures to be sustainable, we must moderate our demand for FX as a country.”

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