The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has declared that the naira has maintained remarkable stability since June 2024, despite facing domestic and global economic pressures.
Speaking after the 298th meeting of the CBN’s Monetary Policy Committee (MPC) in Abuja on Tuesday, Cardoso attributed the stability to the bank’s focused efforts on currency management and price stabilization, which he described as yielding tangible results.
According to him, while the value of a currency is influenced by macroeconomic factors, ensuring its stability remains the central bank’s primary objective. “The Central Bank of Nigeria is there to provide stability. Stability helps you to plan. We do all we can with all the tools available,” he said.
Cardoso emphasized that since June, the naira has demonstrated consistent stability, even in the face of inflationary pressures and uncertainties in the global economy. This steadiness, he noted, is a product of deliberate measures designed to curb currency volatility and foster a predictable economic environment.Strategic Policies Behind Stability
The CBN governor detailed several interventions aimed at stabilizing the naira, including addressing bottlenecks in the supply of foreign exchange. These efforts, he explained, had improved channels such as diaspora remittances and foreign capital inflows, contributing to a significant boost in the country’s foreign exchange reserves.
“Nigeria’s reserves are not just a buffer against economic shocks but also critical for defending the economy during unforeseen crises,” Cardoso said, referencing the COVID-19 pandemic as a stark reminder of the need for robust reserves.
Despite the gains in stability, he acknowledged that the fundamental drivers of the naira’s value, including fiscal deficits, balance of payments, and the country’s reliance on imports, are beyond the CBN’s control.Cardoso urged Nigerians to embrace policies aimed at reducing dependence on imported goods, highlighting the role of local production in strengthening the naira. He expressed optimism that diversification efforts, particularly through import substitution and trade policies, would lessen the pressure on the foreign exchange market.
The governor reiterated the importance of stability in the currency, noting that it provides the foundation for economic growth and investment. While value fluctuations may persist, the CBN remains committed to minimizing volatility and fostering a stable economic environment.
With deliberate policies and collective efforts, Cardoso expressed confidence in the naira’s ability to remain stable, reinforcing its critical role in Nigeria’s economic planning and development.