The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has announced that the naira has demonstrated significant stability since June 2024, despite ongoing challenges in both global and domestic economies.
During a briefing following the 298th meeting of the CBN’s Monetary Policy Committee (MPC) in Abuja, Cardoso highlighted the central bank’s successful efforts in managing the currency and stabilizing prices, which have begun to yield positive outcomes.
Cardoso emphasized the distinction between the value and stability of the naira, stating that while various macroeconomic factors influence a currency’s value, the primary goal of the CBN is to ensure its stability—an essential aspect for effective economic planning and growth.
He remarked, “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… If you look and measure stability between June and now, you find out it has been stable.”
Despite pressures from domestic inflation and global economic uncertainties, Cardoso noted that the naira’s stability is a result of deliberate policies aimed at reducing currency volatility and fostering a predictable economic environment.
The CBN’s strategy includes addressing supply-side bottlenecks that previously affected foreign exchange flow, such as issues with diaspora remittances and foreign capital inflows. Cardoso reported improvements in these areas, leading to a steady increase in Nigeria’s foreign exchange reserves.
While acknowledging the limitations of the central bank in controlling fundamental economic drivers, such as supply and demand dynamics and fiscal policies, Cardoso underscored the importance of managing currency volatility. He urged Nigerians to support import substitution policies and prioritize locally produced goods to strengthen the naira and reduce reliance on imports.
Cardoso expressed optimism that ongoing efforts to diversify the economy would further contribute to the naira’s stability and resilience against external shocks.
