Governor of the Central Bank of Nigeria (CBN), Dr. Olayemi Cardoso has stated that Nigeria’s national currency, the Naira remains undervalued, promising that in 2024 the apex bank will work towards real price discovery in the foreign exchange market.
Cardoso made this remark while delivering the keynote address at the Nigeria Economic Summit Group’s (NESG’s) outlook for 2024 via video conference.
According to him, the apex bank will execute inflation-taming policies through monetary policy instruments and collaboration with the fiscal authorities headed by the Ministry of Finance.
He also promised to frontally tackle all forms indiscipline in the forex market by promptly sanctioning any infractions and abuses.
The CBN Governor further clarified: “We believe that the naira is currently undervalued, And coupled with coordinated measures on the fiscal side, we will expedite genuine price discovery in the near term. This coordinated approach will contribute to a more balanced and stable exchange rate.”
On plans to boost the nation’s FX reserves, Cardoso maintained that the apex bank’s partnership with the Ministry of Finance and the Nigerian National Petroleum Company Limited (NNPCL) would ensure all FX inflows are directly lodged with the CBN as it will result in the accretion of the country’s foreign reserves.
This is even as he expressed optimism that the anticipated resumption of operations in the three refineries across the country would contribute to a reduction in the pump prices of PMS, which is a major contributor to the CPI basket, and by so doing help to thaw the surging inflation rate.
He projected: “Inflationary pressures are expected to decline in 2024 due to the CBN’s inflation-targeting policy, which aims to rein in inflation to 21.4%
“The outlook for decreasing inflation in 2024 will have a profound impact on businesses, providing a more predictable cost environment and potentially leading to lower policy rates, stimulating investment, fueling growth, and creating job opportunities”, the CBN governor added.
