What I Will Do To Strengthen The Naira- New CBN Governor, Yemi Cardoso Boasts

What I Will Do To Strengthen The Naira- New CBN Governor, Yemi Cardoso Boasts....KINDLY READ THE FULL STORY HERE▶

The Central Bank of Nigeria (CBN) is set for a paradigm shift under its new governor, Olayemi Cardoso. Departing from the strategies employed by his predecessor, Godwin Emefiele, Cardoso plans to hone in on monetary policy, aiming to bolster the strength of the Naira.

In a recent statement, Cardoso remarked, “Several issues have caught our attention— notably corporate governance concerns, diminished institutional autonomy, policy inconsistency, and foreign currency issues.”

He asserts that the primary role of the CBN is to tackle inflation and ensure price stability. “We’re setting our sights on foreign exchange unification and, where necessary, interest rate adjustments to spur economic growth,” Cardoso elaborated.

To achieve this economic overhaul, the CBN governor stressed the importance of a macro perspective. With the right strategies in place, he’s optimistic that Nigeria can reach a GDP of $1 trillion within the next eight years.

Discussing inflation, Cardoso emphasised a targeted approach. “If the spike is food-related, we boost food production. Energy-induced inflation? We address the root energy issues. Import-driven inflation? We’re essentially importing the inflation itself,” he explained.

Reflecting on Nigeria’s ballooning money supply, Cardoso, the former Citi Bank chairman, voiced concerns. He identified the surge in money as a prime contributor to inflation, acknowledging the magnitude of this challenge. However, he reassured that measures would be put in place to mitigate the pitfalls of deficit financing.

Stressing the need for compliance and proper governance, Cardoso stated, “We are dedicated to establishing a culture of compliance at CBN. We won’t await oversight; we’ll actively engage with lawmakers to prevent past excesses.”

He pinpointed deficit financing and an undue money surge as culprits for half of Nigeria’s inflation. While addressing the Senate, he underscored the urgency to stabilize the Naira, asserting that Nigeria’s current focus lies in minting currency rather than generating revenue.

Cardoso highlighted unsettled CBN obligations, ranging between N4 billion and N7 billion, as immediate operational challenges to address. He concluded by stressing the critical nature of a stable foreign exchange rate, deeming it vital for Nigeria’s advancement.

This direction, coupled with a collaborative approach, is expected to usher in a new era for Nigeria’s financial landscape under Cardoso’s leadership.

Source: Bushradiogist