The newly appointed Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has outlined his plans to tackle the bank’s outstanding foreign exchange obligations and stabilize the Nigerian naira. In his confirmation hearing before the Senate, Cardoso emphasized the importance of clearing these obligations to make progress in the foreign exchange market.
Cardoso has made transparency, corporate governance, and the autonomy and integrity of the bank top priorities. He aims to restore confidence by implementing evidence-based monetary policies and ending the unconventional strategies used by his predecessor. The Nigerian economy is currently facing challenges, with the naira approaching a value of 1,000 to the US dollar in the parallel market.
To stabilize the naira, the new CBN governor intends to settle existing financial obligations and establish clear and transparent rules. He acknowledged the operational issue of unsettled obligations by the bank and stressed the need to verify the authenticity and extent of these debts. Additionally, he highlighted the importance of an open and transparent system that is understandable to all players, including foreign and portfolio investors.
Cardoso plans to engage relevant stakeholders and seek their input in setting up guidelines that will ease restrictions on investors. He also mentioned that these seemingly simple measures will have a significant impact on attracting investment into the country.
The immediate past acting CBN Governor, Folashodun Shonubi, had earlier stated that the apex bank had concluded negotiations on dollar debts with commercial banks and pledged to clear all foreign exchange backlogs within one to two weeks.
By addressing the backlog of foreign exchange obligations and implementing transparent rules, Governor Olayemi Cardoso aims to strengthen the Nigerian economy and restore stability to the naira.
Punch/MTO
