Cardoso: Foreign reserves decline has little or nothing to do with defending naira

Olayemi Cardoso, governor of the Central Bank of Nigeria , says the recovery of the naira has little or nothing to do with the country’s foreign reserves decline.

The latest appreciation was recorded on April 17, with the naira trading N1, 050 per dollar at the parallel section of the market. “As much as I have read in the recent few days, some opinions with respect to what is happening with our reserves, and the central bank defending the naira, if you think back to what our overall policy and philosophy has been, you can see is counterintuitive,” he said.“What we’re encouraging is for the markets to willing buyer, willing seller, price discovery and ultimately, I perceive a future where central banks will really not need to intervene, except in very, very unusual circumstances.

“So, it’s important not to keep them out of the mainstay. But in terms of intervention, frankly that’s really not our intention at all.”Cardoso said the reduction in the country’s reserves is due to the payment of debts, and not defending the naira.

Nigeria Latest News, Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Depleted foreign reserves used to settle debts, not defend NairaThe Central Bank governor, Olayemi Cardoso, has said the recent decline in the nation’s foreign reserves was used to settle debts owed to international creditors and not to defend the naira.
Source: vanguardngrnews - 🏆 5. / 75 Read more »

Central Bank of Nigeria Bans Use of Foreign Currency Collaterals for Naira LoansThe Central Bank of Nigeria (CBN) has instructed banks to cease accepting foreign currency-denominated collaterals for naira loans. Existing loans with foreign currency collaterals must be reduced within 90 days or face a 150 percent capital adequacy ratio computation.
Source: thecableng - 🏆 2. / 80 Read more »

CBN bans foreign currency collateral: Will foreign investors be wary of the Nigerian market?Nigeria's CBN policy bars foreign currency as loan collateral, raising questions about the impact on foreign investment and banking stability.
Source: TODAY - 🏆 12. / 53 Read more »

Nigeria’s Central Bank clears all ‘valid’ FX backlog, increases country’s foreign reservesThe CBN recently completed the payment of $1.5 billion
Source: PremiumTimesng - 🏆 3. / 78 Read more »

Why Nigeria’s foreign reserves dippedCBN governor Olayemi Cardoso said Debt servicing i responsible for the drop in Nigeria’s foreign reserves.
Source: GuardianNigeria - 🏆 1. / 94 Read more »

CBN clears $1.5bn outstanding fx transactions, eliminates legacy backlogThe Central Bank of Nigeria (CBN) says all valid foreign exchange backlogs have now been settled.
Source: GuardianNigeria - 🏆 1. / 94 Read more »