FX Crisis: Nigeria has already seen the worst of naira volatility, says Cardoso  

The Governor of the Central Bank, Yemi Cardoso, stated that the country has already experienced the worst of naira volatility regarding foreign exchange. 

Cardoso said this in an interview on Tuesday in London while speaking to Bloomberg TV. 

The head of the apex bank said he is satisfied with how far they have been able to manage the currency crisis in the past few months.  

Cardoso, however, added that it is a work in progress as they will continue to implement certain macroeconomic fundamentals that will positively impact the market.  

“We are relatively pleased with how far we’ve gotten now. In the past two to three weeks after a period of volatility, we’ve seen a lot of stability in the market.  

“There’s hardly been any movement in the currency. The rates have been merged. We believe this is good and allow companies to plan, and signal to potential investors where the road of travel is in our economy.  

“We don’t believe that we’ve gotten to the position where we want to stay at. It’s a continuous work in progress.  

“And we’ll do everything to sure that we manage the macroeconomic fundamentals that affect the market. 

“I do believe that we have more or less seen the worst in terms of volatility,” the CBN governor said.  

On Appreciation of the Naira 

Regarding whether the naira has reached its peak value or if further appreciation is expected, the CBN chief stated that it depends on “a host of different issues,” implying that the fiscal side plays a significant role in determining the value of the currency. 

“Well, that’s a question which I will say it depends on a whole host of different issues,” Cardoso said.  

Meanwhile, he mentioned that both monetary and fiscal authorities are working together to ensure liquidity in the foreign exchange market.  

He said both parties complement in policymaking decisions to manage the currency situation in the country.  

“We are also very alive in the way and manner in which that market operates in ensuring that it gives the best value that can given.  

“It is also important to mention that the monetary and fiscal work closely together, and I believe that that complementarity is what will give us that ultimate grip on the naira in the long period of time,” Cardoso added. 

What you should know 

Since last year, Nigeria has been plagued with currency fluctuations in the foreign exchange market, creating a ripple effect of instability across all sectors of the economy.  

At the peak of the crisis, the naira depreciated against the dollar as low as N1,900/$ earlier this year.  

However, the currency rebounded to about N1,480/$ in May, hovering within the bandwidth of N1,500 with a semblance of stability.  

Accordingly, the CBN has rolled out a host of measures and circulars to manage the currency, including clampdowns on the informal FX market such as BDCs operators and the crypto market.  

As of this month, the naira has relatively stabilized against the dollar, with a remarkable increase in foreign exchange inflow into the foreign exchange reserves.  



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