The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, asserted that the value of the naira has shown remarkable stability since June 2024, despite challenges in the global and domestic economic landscapes.
Speaking after the 298th meeting of the CBN’s Monetary Policy Committee (MPC) in Abuja on Tuesday, Cardoso emphasized that the central bank’s efforts to manage the currency and stabilize prices have begun to yield positive results.
During the briefing, Cardoso acknowledged the importance of addressing both the value and stability of the naira, drawing a distinction between the two concepts. While the value of a currency is subject to various macroeconomic factors, the CBN’s primary goal is to ensure its stability, which is vital for economic planning and growth.,
Cardoso explained that the focus of the CBN has always been on maintaining the stability of the naira, which he described as essential for fostering an environment conducive to economic planning and investment.
He said: “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 and there are multiple tools including sanctioning those with bad behavior, a whole host of different things to ensure their stability. Now if you look and measure stability between June and now, you find out it has been stable. It has been stable. The currency has been stable.”
According to the CBN governor, since June 2024, the naira has remained stable, despite some pressure points from both domestic inflationary trends and global economic uncertainties. This period of stability, Cardoso noted, is a direct result of deliberate policies aimed at reducing currency volatility and creating a more predictable economic environment.
The CBN governor pointed out that while the central bank cannot control the fundamental drivers of the currency’s value, such as supply and demand dynamics, fiscal deficits, and the country’s balance of payments, it can effectively manage the volatility around these factors.