CBN gives assurance of stability in exchange rate

The Central Bank of Nigeria, CBN, has given assurance of stability in the naira-dollar exchange rate.

CBN Governor Olayemi Cardoso said this at an interface with the Senate Joint Committee on Banking and Insurance in Abuja on Friday.

“In terms of the volatility of the exchange rate, we are using various tools to ensure the stability of the exchange rate sooner than later.

“I really can’t tell other than to say that I do believe that once all the measures kick in, there will be price discovery that will indeed make sense for everybody.

“We all have a responsibility in ensuring demand and supply. We are working on supply, but on the demand side, we all have to moderate our various interests on that.

“This is to ensure that demand begins to come to a level that is sustainable,” he said.

Cardoso said that the apex bank doesn’t have a magic wand to stabilise the foreign exchange, saying that Nigerians also must reduce their frequent demand for dollars for personal use.

He said that the country must begin to look inward on how to improve its education and health institutions to reduce demand for dollars.

Cardoso said that the CBN had worked hard to ensure that the crisis of confidence concerning the bank had been diluted.

“International investors are happier to come and invest in our economy. We have seen an increase in appetite for Nigeria, as a result of which the volume of trading in the foreign exchange market has increased in the past few days.

“It has exceeded what we have seen in years; that is a solid sign of a return to confidence in our economy,” he said.