₦airaland Forum

The Governor, Central Bank of Nigeria, CBN, Mr Olayemi Cardoso, has said that the apex bank under him took the bold step of floating the Naira in the foreign exchange market in order to bring the official exchange rate closer to market reality.

About three CBN Governors before Cardoso had toyed with the floatation option when they faced constant excess demand for foreign exchange and exchange rate pressures. They all abandoned the option due to fear of massive depreciation of the value and the contagion effect across the macroeconomic space.

But Cardoso, speaking for the first time on his journey on the saddle so far and focusing on the turbulence in the financial market following his assumption of office a year ago, explained that the floatation policy was meant to address the disparity between the official and parallel rates which encouraged arbitrage and speculation, eroding trust in the market.

While addressing members of the Harvard Club of Nigeria in Lagos at the weekend on the topic: “Leadership in Challenging Times: Restoring Credibility, Building Trust, and Containing Inflation”, Cardoso recalled that upon assumption of duty, he understood that the credibility of the Central Bank of Nigeria (CBN) had to be the bedrock of the actions he and his team took.


He stated: “Without credibility, no policy, however well-intentioned, can succeed. Floating the naira, a decision met with considerable public criticism, was necessary to bring the official exchange rate closer to market reality. ‘‘The disparity between the official and parallel rates had encouraged arbitrage and speculation, eroding trust in the market.

“Credibility is earned by consistency. The decision to close this gap, while painful in the short term, sent a message to market participants that the CBN was committed to transparency and sound monetary policy,” he added, noting that speculative trading had been reduced, and stability was gradually returning to the currency markets.

While noting that containing inflation remained the Bank’s core mission, he acknowledged that the CBN was yet to meet its target.

However, he stressed that recent declines reported by the National Bureau of Statistics (NBS) in July and August 2024 showed that the CBN was moving in the right direction.


He explained further: “Our decision to raise the Monetary Policy Rate (MPR) to 27.25% was a bold move. Higher interest rates, while painful for borrowers, are necessary to curb excess money in circulation and control inflation. Leadership is about making hard choices to secure long-term stability over short-term comfort in moments like these.’’

naijaboy756:
Is there disparity now or not?

naijaboy756:
Is there disparity now or not?

These guys just like higher bands of hardship

Fuel from 197 to 1200 both 197 and 1200 has subsidy payments

Naira from 460 to 1,600 both has disparities

Kukutenla:
Because you're clueless looters
What other reason

Omooba77:
The Governor, Central Bank of Nigeria, CBN, Mr Olayemi Cardoso, has said that the apex bank under him took the bold step of floating the Naira in the foreign exchange market in order to bring the official exchange rate closer to market reality.

About three CBN Governors before Cardoso had toyed with the floatation option when they faced constant excess demand for foreign exchange and exchange rate pressures. They all abandoned the option due to fear of massive depreciation of the value and the contagion effect across the macroeconomic space.

But Cardoso, speaking for the first time on his journey on the saddle so far and focusing on the turbulence in the financial market following his assumption of office a year ago, explained that the floatation policy was meant to address the disparity between the official and parallel rates which encouraged arbitrage and speculation, eroding trust in the market.

While addressing members of the Harvard Club of Nigeria in Lagos at the weekend on the topic: “Leadership in Challenging Times: Restoring Credibility, Building Trust, and Containing Inflation”, Cardoso recalled that upon assumption of duty, he understood that the credibility of the Central Bank of Nigeria (CBN) had to be the bedrock of the actions he and his team took.


He stated: “Without credibility, no policy, however well-intentioned, can succeed. Floating the naira, a decision met with considerable public criticism, was necessary to bring the official exchange rate closer to market reality. ‘‘The disparity between the official and parallel rates had encouraged arbitrage and speculation, eroding trust in the market.

“Credibility is earned by consistency. The decision to close this gap, while painful in the short term, sent a message to market participants that the CBN was committed to transparency and sound monetary policy,” he added, noting that speculative trading had been reduced, and stability was gradually returning to the currency markets.

While noting that containing inflation remained the Bank’s core mission, he acknowledged that the CBN was yet to meet its target.

However, he stressed that recent declines reported by the National Bureau of Statistics (NBS) in July and August 2024 showed that the CBN was moving in the right direction.


He explained further: “Our decision to raise the Monetary Policy Rate (MPR) to 27.25% was a bold move. Higher interest rates, while painful for borrowers, are necessary to curb excess money in circulation and control inflation. Leadership is about making hard choices to secure long-term stability over short-term comfort in moments like these.’’

https://www.vanguardngr.com/2024/10/why-we-floated-the-naira-cardoso/

etrouble:
Emilokan JAGABAN m.

What General Ibrahim Badamosi Babangida, General Sani Abacha, General Abdulsalami Abubakar, General Olusegun Obasanjo, General Muhammadu Buhari, Alhaji Musa Yar’Adua and Dr Goodluck Jonathan could not do for about 40 years, Emilokan JAGABAN did it in the first 30 minutes of his government.

Now you all should know whom the real General is.

etrouble:
Cry well well. We shall run this government the way we like, but bearing in mind that one day we shall all give account

etrouble:
You have comprehension problems

Kukutenla:
You sound demented and terribly poor at trolling
You either choose to run the country down without conscience
Or you be mindful of giving account and run the country right
You can't be everywhere

etrouble:
Emilokan JAGABAN m.

What General Ibrahim Badamosi Babangida, General Sani Abacha, General Abdulsalami Abubakar, General Olusegun Obasanjo, General Muhammadu Buhari, Alhaji Musa Yar’Adua and Dr Goodluck Jonathan could not do for about 40 years, Emilokan JAGABAN did it in the first 30 minutes of his government.

Now you all should know whom the real General is.

Omooba77:
The Governor, Central Bank of Nigeria, CBN, Mr Olayemi Cardoso, has said that the apex bank under him took the bold step of floating the Naira in the foreign exchange market in order to bring the official exchange rate closer to market reality.

About three CBN Governors before Cardoso had toyed with the floatation option when they faced constant excess demand for foreign exchange and exchange rate pressures. They all abandoned the option due to fear of massive depreciation of the value and the contagion effect across the macroeconomic space.

But Cardoso, speaking for the first time on his journey on the saddle so far and focusing on the turbulence in the financial market following his assumption of office a year ago, explained that the floatation policy was meant to address the disparity between the official and parallel rates which encouraged arbitrage and speculation, eroding trust in the market.

While addressing members of the Harvard Club of Nigeria in Lagos at the weekend on the topic: “Leadership in Challenging Times: Restoring Credibility, Building Trust, and Containing Inflation”, Cardoso recalled that upon assumption of duty, he understood that the credibility of the Central Bank of Nigeria (CBN) had to be the bedrock of the actions he and his team took.


He stated: “Without credibility, no policy, however well-intentioned, can succeed. Floating the naira, a decision met with considerable public criticism, was necessary to bring the official exchange rate closer to market reality. ‘‘The disparity between the official and parallel rates had encouraged arbitrage and speculation, eroding trust in the market.

“Credibility is earned by consistency. The decision to close this gap, while painful in the short term, sent a message to market participants that the CBN was committed to transparency and sound monetary policy,” he added, noting that speculative trading had been reduced, and stability was gradually returning to the currency markets.

While noting that containing inflation remained the Bank’s core mission, he acknowledged that the CBN was yet to meet its target.

However, he stressed that recent declines reported by the National Bureau of Statistics (NBS) in July and August 2024 showed that the CBN was moving in the right direction.


He explained further: “Our decision to raise the Monetary Policy Rate (MPR) to 27.25% was a bold move. Higher interest rates, while painful for borrowers, are necessary to curb excess money in circulation and control inflation. Leadership is about making hard choices to secure long-term stability over short-term comfort in moments like these.’’

https://www.vanguardngr.com/2024/10/why-we-floated-the-naira-cardoso/

iwaeda:
You floated Naira and still defending by selling dollars to black market operators to keep the rate to abysmal N1650 per dollar. Truth is that your policy have thrown millions to abject poverty. Nlfpmod, we warned them, he is only a TAX collector.

Ofunaofu:
So the naira was actually floated. 

I thought Tinubu paid agents, BATerians said that the naira wasn't floated but rather that the naira was allowed to find its true value. 


I have asked them severally here, have the naira finally found its true value, but they keep changing the goal post and speaking from two sides of their mouth.