CBN Gov, Cardoso, assures Nigerians of efforts to strengthen Naira, acknowledges challenges

Central Bank of Nigeria (CBN) Governor Dr. Olayemi Cardoso on Thursday, Nigerians to remain patient as the bank works to tackle the depreciation of the Naira.

Speaking through Dr. Usman Opanachi of the CBN’s Monetary Policy Department at the Nigerian Economic Society’s public lecture on “Recent Developments in the Nigerian Foreign Exchange Market,” Cardoso acknowledged the challenges and expressed confidence in finding solutions.

Cardoso emphasized the bank’s commitment to strengthening the Naira, stating, “Anytime the Naira is on trial, the CBN is also on trial. We are working day and night to address the challenges.”

He acknowledged the complex nature of the issue, highlighting the high exchange rate and inflation as key concerns.

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Cardoso admitted the limitations of managing the exchange rate artificially, stating, “Excess demand for forex in Nigeria is a legendary problem. It has just been there and over the years, the bank has implemented various strategies to address this problem. Those strategies have only been able to provide some temporary relief.

“The Central Bank of Nigeria does not supply or produce dollars. It is the naira that it produces. The CBN management thinks when you hold the price of a commodity that is determined by forex down artificially, a time comes when you will not be able to do that.”

His message suggests a shift toward addressing the root causes of forex demand imbalance, rather than solely relying on price controls.

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