…volatility won’t end overnight – Cardoso
The Central Bank of Nigeria governor, Yemi Cardoso, has assured Nigerians that the apex bank is doing everything possible to ensure that the country achieves a stable exchange rate.
This is despite the volatility in the foreign exchange (FX) rate which, according to Cardoso, would not end overnight as there would be continuous ups and downs in the market.
The CBN governor, while speaking in a joint briefing on the sidelines of the just-concluded World Bank/IMF Spring Meetings in Washington DC, said, “Again, to be honest, I think we should expect that there will be increases here and there, ups and downs and even from what you’ve reported yesterday, from what I gather, the naira has begun strengthening overnight.
“So I think the most important thing to say here is that we are doing everything possible to ensure that we have a stable exchange rate and an exchange rate that finds its adequate price discovery level. That is a process that will continue.”
The CBN governor said the apex bank is targeting to double the current flows in terms of diaspora remittances.
He admitted that the target appears very ambitious but expressed confidence in the ability of the country to accomplish it.
He said the response from the foreign portfolio investors (FPI) has been positive.
“They’re part of a process of continuous engagement. And it is so critical that we use any opportunity we can to dialogue with investors and to update them on the state of the reforms that have taken place,” Cardoso said.
“The response from the foreign portfolio investors has been very positive and it shows in the numbers and we expect from what the reactions that we got during the course of the past few days, that positive sentiment will continue to improve,” he said.
