CBN gives update on exchange rate

The exchange rate between the naira and the dollar will remain stable, according to the Central Bank of Nigeria, CBN.

This was said by CBN Governor Olayemi Cardoso on Friday in Abuja during a meeting with the Senate Joint Committee on Banking and Insurance.

“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 explained.

Cardoso stated that Nigerians must lessen their frequent need for dollars for personal purposes and that the apex bank lacks a magic wand to manage the foreign exchange market.

He said the nation must start looking inward at how to enhance its health and education systems to lower the demand for dollars.

According to Cardoso, the CBN had put in a lot of effort to ensure that the bank’s crisis of confidence had subsided.

“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.

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