Now when economic instability has touched corners of every market, promising news comes from Olayemi Cardoso, the governor of the Central Bank of Nigeria. Cardoso’s recent statements offer a beacon of hope, affirming that the turbulent times for the Nigerian naira are a thing of the past.
With an authoritative tone, Cardoso assures that the currency has weathered its worst storms and is now navigating through calmer waters.
Through economic reforms
During the CEO Forum 2024, themed “Leadership in the Economic Times” and organized by BusinessDay, Cardoso addressed a crowd of hopeful economists and business leaders. He explained that the previous volatility of the naira could largely be attributed to systemic distortions, including illicit financial flows and non-compliance with market regulations.
“Initially, we encountered resistance when we started implementing correct measures,” Cardoso shared. “There was a noticeable trend of market participants trying to anticipate and circumvent these new regulations.” However, he emphasized that with continued transparency and adherence to these reforms, the market has begun to stabilize significantly.
Strengthening market confidence
The conversation at the forum wasn’t just limited to past issues; Cardoso also highlighted the recent positive developments. He cited the clearing of a $7 billion foreign exchange backlog as a pivotal moment that restored integrity and confidence in the Central Bank’s operations.
“It’s crucial for those in the financial sector to realize that consistency in our policies is key for a smoothly functioning market,” he asserted.
In addition to regulatory adjustments, Cardoso touched upon the topic of bank recapitalization and the strategic omission of retained earnings from previous fiscal considerations. “This approach not only diversifies the services that banks can offer but also enhances transparency and comparability within the banking sector,” he explained.
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