Emmanuel OchayiYemi Cardoso, the Governor of the Central Bank of Nigeria, addressed concerns about the fluctuating foreign exchange (FX) rates in Nigeria.
He said this during a briefing at the World Bank/IMF Spring Meetings in Washington DC, emphasizing that stability in the FX market won’t materialize overnight, indicating that fluctuations will persist.
“Expect ups and downs,” Cardoso stated frankly. “The most important thing to say here is that we are doing everything possible to ensure that we have a stable exchange rate.”
Cardoso’s remarks come amidst ongoing efforts by the CBN to stabilize Nigeria’s currency. Despite acknowledging the challenges, he reiterated the bank’s commitment to achieving a stable exchange rate, describing it as an ongoing process.
“We are targeting to double the current flows in terms of diaspora remittances,” Cardoso revealed, acknowledging the ambitious nature of the goal but expressing confidence in Nigeria’s capacity to achieve it.
READ ALSO: Why CBN Adopted Market-based Approach In Managing Forex – Cardoso
The CBN Governor also shed light on the positive response from foreign portfolio investors (FPI), indicating that continuous engagement with investors is critical. He highlighted the importance of dialogue and updating investors on reforms, noting the favorable response from FPIs during recent engagements.
“They’re part of a process of continuous engagement,” Cardoso affirmed. “The response from the foreign portfolio investors has been very positive, and we expect that positive sentiment will continue to improve.”
Cardoso’s pragmatic approach to addressing concerns about FX volatility underscores the CBN’s proactive stance in managing Nigeria’s currency challenges. While acknowledging the persistence of fluctuations, his assurance of ongoing efforts to stabilize the exchange rate provides a ray of hope for Nigerians and investors alike.
