Washington, April 18, 2024 – The Central Bank of Nigeria (CBN) says it is not defending the naira with foreign reserves.
Its Governor, Olayemi Cardoso, said this at the ongoing Spring Meetings of the International Monetary Fund (IMF)/World Bank in Washington DC.
“Defending the naira seems to be a prevalent theme. Let me be very clear: it is not our intention to defend the naira.”
“Defending the naira goes against our core philosophy and policy. We want a naira that performs based on market forces, as long as we have a vibrant foreign exchange market.
“The recent changes in our reserves are not for defending the naira. They are for settling obligations that were due. After all, that’s the primary purpose of holding foreign reserves.”
Cardoso said he appreciated the past reliance on Bureau De Change (BDCs) to meet forex needs for essential purposes, but said the CBN had shifted towards a market-driven approach. (GBN)
