Naira’s Free Fall: Cardoso Begs Nigerians To Calm Down

• Says CBN working to strengthen currency 

With the Naira maintaining its free fall against the United States dollar and other world currencies, Governor of the Central Bank of Nigeria (CBN), Dr. Olayemi Cardoso, has begged Nigerians to calm down and exercise patience, assuring that the apex bank’s management is working hard to strengthen the nation’s currency.

Cardoso, who promised that every positive measure is being taken at present to shore up the Naira, said; “Anytime the Naira is on trial, the CBN is also on trial. We are working day and night to address the challenges and we hope things will work out.”

Speaking at the 2024 public lecture organised by the Nigerian Economic Society (NES) at the CBN Centre of Excellence Hall, University of Ibadan with the theme; “Recent Developments in a Nigerian Foreign Exchange Market: Issues, Options and Way Forward”, the CBN Governor noted that with the exchange rate featuring nearly in every sector of the economy, it remains a huge problem which the apex Bank is currently working round the clock to resolve.

Represented at the occasion by Dr. Usman Opanachi of the CBN’s Department of Monetary Policy, Cardoso admitted that; “The exchange rate and inflation are very high now. The exchange rate is a problem. Excess demand for forex in Nigeria is a legendary problem. It has just been there and over the years, the bank has implemented various strategies to address this problem. Those strategies have only been able to provide some temporary relief.”

According to him; “The Central Bank of Nigeria does not supply or produce dollars. It is the Naira that it produces. The CBN management thinks when you hold the price of a commodity that is determined by forex down artificially, a time comes when you will not be able to do that.”

While defending the apex bank’s policy of leaving the market forces to determine the value of the currency, Cardoso said; “The thinking of the new management of CBN is that the policies you have are intended to address the problem.

“The approach the management has adopted is the market forces approach. The bank now allows the market forces to play a greater role in the determination of the price of Naira.”

Also speaking at the event, renowned economist, Professor Sam Olofin, maintained that the CBN will find it difficult to control foreign exchange dealings because the parallel market forces have taken over and currently dominate in the sector.

Taking a swipe at the present arrangement vis-a-vis the evolution of the Nigerian Foreign Exchange market, Prof Olofin said; “We are only applying the same old drugs on a patient without any good results. The parallel markets are outside the purview of the CBN.”

Earlier in his welcome remarks, President of the Nigerian Economic Society (NES), Professor Adeola Adenikinju, while acknowledging the suffering and biting economic hardship in the country, tasked the Federal Government to consult economists on measures to effectively address the weak economy and bring the country out of its current crisis.