CBN Governor Makes Case For Stable Exchange Rate

Dr Yemi Cardoso

The Governor of Central Bank of Nigeria (CBN) Dr Olayemi Cardoso has harped on the need to create a stable exchange rate and apply short and medium term measures to achieve the target. 

He stated this on Tuesday in Abuja during the  confirmation of his appointment as the bank’s governor by the Red Chamber. 

This was even as the senate confirmed the nomination of Mrs Emem Usoro, Mr Muhammad Dattijo, Mr Philip Ikeazor and Dr Bala Bello as the bank’s four deputy governors.

The nomination ollowed the consideration and approval of a motion moved by Senate Leader, Sen. Opeyemi Bamidele (APC-Ekiti Central) at the chamber.

Cardoso noted that CBN’s new management team would evolve rules that would be transparent and comprehensible by all stakeholders in the finance sector. 

“We cannot expect serious foreign investors, portfolio investors who have an impact on the market to do so if we do not have a transparent system that everybody understands and can rely on,’’ he said.

On inflation and costs of goods, Cardoso maintained that the CBN management would adopt evidence-based monetary policies.

Prior to the confirmation, the Senate suspended its orders to admit the nominees into the chamber.

Senior Special Assistant to the President on National Assembly Matters (Senate) Sen. Abdullahi Gumel led the nominees into the chamber.

Thereafter, the CBN governor and his deputies took turns to highlight their career profiles and professional experiences.

Cardoso harped on the need to revamp the infrastructure at the central bank by enhancing the data gathering capacity, which he believed was necessary to make decisions based on stellar data. 

While stressing that the decision is crucial in measuring inflation, he disclosed that reliable studies revealed that in the past 10 to 15 years, at least 50 per cent of inflation resulted from money supply and deficit financing.

“This is a big problem; at least, it certainly has been over a period of time and it is something we have to face frontally,’’ he added.

He informed the Senate that the CBN would ensure that the issue of deficit financing ceased to be a national problem.

Cardoso said for 12 years, between 2010 and 2022, he was privileged to serve as the chairman of Citi Bank where he was dedicated to enhancing both the financial and non-financial operations of the institution.

President of the Senate, Sen. Godswill Akpabio (APC-Akwa Ibom North-West) said that the Senate reconvened from its annual recess to expeditiously consider and confirm the nominees.

He hinted that the confirmation also resulted from the emergency resignation of the former CBN Governor, Mr Godwin Emefiele.

Akpabio encouraged the Senate Committees on Finance and Banking, Insurance and other Financial Institutions to conduct regular and thorough oversight at the CBN.