CBN Governor Cardoso Reaffirms Commitment to FX Stability and Inflation Control
Central Bank of Nigeria (CBN) Governor Olayemi Cardoso has reaffirmed the institution’s dedication to stabilizing the foreign exchange market and controlling inflation. During a visit by a Harvard Kennedy School (HKS) delegation, he outlined key reforms implemented under his leadership, such as the unification of Nigeria’s exchange rate system and clearing a $7 billion foreign exchange backlog. These efforts have led to a significant increase in Nigeria’s foreign reserves, now exceeding $40 billion, the highest level in nearly three years. Additionally, the reforms have helped attract substantial foreign portfolio investments.
Cardoso also addressed concerns about inflation, highlighting the CBN’s aggressive monetary policy measures, including a sharp increase in the Monetary Policy Rate (MPR) by 875 basis points to 27.5%. These efforts aim to curb inflationary pressures and stabilize the macroeconomic environment. Cardoso emphasized the importance of fostering intellectual engagement and policy-driven solutions as part of the CBN’s broader strategy for economic stability.
The Harvard Kennedy School delegation, consisting of 50 students from 19 countries, visited the CBN headquarters as part of their Africa Trek. The students, from prestigious institutions like HKS, Harvard Business School, MIT, and Stanford University, engaged in discussions on Nigeria’s financial system and the country’s economic prospects. This interaction is part of the initiative to connect emerging global leaders with policymakers in Africa, offering an invaluable opportunity to learn firsthand about the continent’s economic and governance challenges.
During the visit, Cardoso underscored the importance of building long-term partnerships to strengthen trust in Nigeria’s financial system. He pointed to the increasing interest from global financial giants like JP Morgan, Citi Bank, and the International Monetary Fund (IMF) as evidence of growing investor confidence in the Nigerian economy. This visit, marking the first Africa Trek delegation hosted by the CBN, highlights the bank’s commitment to facilitating knowledge exchange and cultivating strategic partnerships for Nigeria’s economic development.
source: business day