The Central Bank of Nigeria Governor, Yemi Cardoso, has said that the volatility in the foreign exchange (FX) rate cannot end overnight, adding that there will be continuous ups and downs in the market.
He, however, assured Nigerians that the CBN is doing everything possible to ensure that Nigeria achieves a stable exchange rate.
Cardoso spoke in a joint briefing on the sidelines of the just-concluded World Bank/IMF Spring Meetings in Washington DC.
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“Again, to be honest, I think we should expect that there will be increases here and there, ups and downs and even from what you’ve reported yesterday, from what I gather, the naira has begun strengthening overnight,” Cardoso said.
“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. That is a process that will continue.”
The CBN Governor said the apex bank is targeting to double the current flows in terms of diaspora remittances.
He admitted that the target appears very ambitious but expressed confidence in the ability of the country to accomplish it.
According to the CBN boss, the response from the foreign portfolio investors (FPI) has been positive.
“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,” he said.
“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.”
