Cardoso says naira reverting to true value as confidence returns
“Again, let me say that yes, the naira has seen quite some volatility in the recent past, and we believe that it is getting to a position of stability.
“But it is very important to recognise that as far as the international community and international investors are concerned, the naira is at a point where it is a lot more reflective of its real rate, as a result of which it is more competitive,” he noted.
He added that Nigeria has witnessed an uptick in interest from international investors, stressing the need for collaboration among policymakers, the private sector and the civil society to drive a meaningful change.
Cardoso highlighted that the forum provided a platform for engagement, allowing all the stakeholders to exchange ideas and refine strategies for the road ahead. He explained that the forum is an avenue for dialogue and collaboration on the critical issues shaping monetary policy.
“This forum is a focused platform for rigorous intellectual discourse, providing an opportunity to examine monetary policy formulation, implementation and outcomes. Unlike broader economic conferences, our discussions here are designed to address monetary policy challenges with precision, offering evidence-based insights to enhance policy effectiveness,” he stated.
He asserted that Nigeria has witnessed relative stability in the foreign exchange (FX) market, a narrowing exchange rate disparity, and raising external reserves to over $40 billion as of December 2024.
Cardoso stressed that the growth in external reserves was organic, adding: “So not only do we have a higher reserve number in relative terms, but also the health of our reserve level is certainly good, much stronger and has been more bolstered.”
The Deputy Governor of Economic Policy, Muhammad Abdullahi, argued that the tightening regime adopted by the CBN is aimed at combating inflationary pressure, anchoring inflation expectations and fostering confidence in the economy.
“Leveraging the traditional monetary policy tools, such as adjustments to the monetary policy rate (MPR) and cash reserve requirements (CRR), complemented with the use of open market operations, the bank implemented a cumulative increase of 875 basis points in the MPR, bringing it to 27.5 per cent by December 2024.
“In addition, the CRR for other depository corporations was raised to 50 per cent and that of merchant banks to 16 per cent, while maintaining the liquidity ratio at 30 per cent. These decisive measures were necessary to address inflationary pressures and stabilise prices, which are critical to maintaining the confidence of market participants,” Abdullahi explained.
On his part, the Minister of Budget and National Planning, Abubakar Bagudu, said the relative peace in Borno, Kaduna and Sokoto areas is positively impacting inflation as food production has increased.
