FX: We won’t stop until we stabilize the naira – Cardoso

According to the Central Bank of Nigeria (CBN), every effort is being made to ensure that the foreign exchange (FX) rate remains constant.

This was said by CBN governor Yemi Cardoso at a news conference held in conjunction with the World Bank Group and International Monetary Fund (IMF) annual meetings.

According to Cardoso, the financial authority is also making efforts to guarantee that the exchange rate reaches a suitable level of price discovery.

“To be honest again, I think we should expect that there will be ups and downs, as well as occasional increases. Even from what you reported yesterday, it seems to me that the naira has started to strengthen overnight,” he remarked.

“So I think the most important thing to say here is that we are doing everything possible to ensure that we have a stable exchange rate and an exchange rate that finds its adequate price discovery level.”

The CBN governor said the local currency will continue to appreciate against foreign currencies.

On diaspora remittances, Cardoso said the bank’s target is to double the present flows.

According to Cardoso, the target may appear ambitious, but he expressed confidence that the country will be able to accomplish it.

He said Nigeria will continue to engage investors in discussions centred on the state of the reforms implemented so far.

Cardoso also said there has been positive response from foreign portfolio investors (FPI).

“They’re part of a process of continuous engagement. And it is so critical that we use any opportunity we can to dialogue with investors and to update them on the state of the reforms that have taken place.

“The response from the foreign portfolio investors has been very positive and it shows in the numbers and we expect from what the reactions that we got during the course of the past few days, that positive sentiment will continue to improve,” he added.

Recall that on April 20, the federal government said it is considering the issuance of a diaspora bond to boost remittances.