Economy, Featured
…Says that CBN’s target on inflation is to moderate it to 21.4%.
THE Governor of Central Bank of Nigeria, CBN, Olayemi Cardoso has called on Nigerians to moderate the demand for the forex, just as he warned that as a country, we must address the supply side of Forex as it has kept the nation’s economy in a narrow bucket.
He said that the apex cannot do intervention, but will partner rather than get involved in it directly, and run the risk associated with intervention. We must address the supply side of Forex. It has kept us in a narrow bucket.
Speaking on Friday when he appeared before the Senate Joint Committees on Finance, Banking and Other Financial Institutions and National Planning, Cardoso who noted that CBN’s target on inflation is to moderate it to 21.4%, said that the adoption of the inflation-targeting framework involves clear communication and collaboration with fiscal authorities to achieve price stability, potentially leading to lowered policy rates, stimulating investment, and creating job opportunities.
According to the CBN Governor, the Monetary Policy Committee, MPC meeting that is scheduled for the 26th and 27th of February is also expected to review the situation and take further decisions on these important issues.
Cardoso who explained that the shift to a single rate was to stabilize the market and address exchange rate volatility and claimed over $1b has come to the market, said that the market has been responding to the policy that we have put in place, adding “that for these measures to be sustainable, we must moderate our demands for forex. We are working very hard to bring back credibility to the CBN and many of the investors who over the years have considered the environment inimical, we don’t have to beg them. If we are doing the right thing, investors will come. For them to come, they have to believe that you will do the right things.
I also want to say that in establishing credibility, there are certain things that we needed to do.
“We must moderate our demands for forex. Where there are opportunities to substitute locally, so we should. The total quantum for education and medical are more than our external reserves. If we are able to up our game on education, medicals, there won’t be need for our people to go abroad.”
Details later… vanguard
A.
-February 09, 2024 @ 12:48 GMT|
Tags: CBN Yemi Cardoso
