Naira Slide Deepens Despite Cardoso’s Forex Reform Pledge

The Naira has maintained the plunge it recorded on Monday November 27, the first working day after the Governor, Central Bank of Nigeria (CBN), Dr Olayemi Cordoso, announced the planned reform of the forex market to achieve the desired stability of the local currency.

Dr Cardoso in his speech at the Bankers Committee meeting in Lagos on Friday, November 24, revealed that new foreign exchange guidelines and legislations will be developed in collaboration with the banks and other stakeholders towards efficient monetary policy implementation and stability.

“Stabilizing the exchange rate is another critical aspect of our efforts to promote economic stability. I had the privilege of speaking with business owners engaged in international trade. They recounted the difficulties of navigating the fluctuations in the exchange rate, which often led to uncertainties and unexpected costs.

“The volatility in the foreign exchange market disrupted their planning and hindered their ability to make informed business decisions.

“It is imperative that we provide transparency and create a market environment that allows fair determination of exchange rates, ensuring stability for businesses and individuals alike.

“To address these challenges, the Central Bank of Nigeria is committed to achieving monetary and price stability. This is not just a technical objective, but it has real-life implications for the well-being of our citizens.

“Through targeted policies, transparent market operations, and coordination between monetary and fiscal authorities, we can ensure a more stable exchange rate, control inflation, and create an enabling environment for businesses and individuals to thrive.

“This is what I, together with my team at the Central Bank have been focused on doing in the past two months” Cardoso said.

However, the Naira on Monday November 27, weakened to N814.60 per dollar against N794.89 per dollar it traded on Friday November 24 when Cardoso made the speech.

It plunged deeper to N881.88 per dollar at the close of trading on Tuesday, November 28 before hitting the low of N927.19 to close the week on Friday, December 1, representing a 16.6 percent depreciation in one week.