The Central Bank of Nigeria (CBN) Governor, Dr. Olayemi Cardoso has said the CBN is not defending the naira as has been reported in some section of the media.
He said the pressure on Nigeria’s foreign reserve lately is because of debt servicing.
“Data show that total external debt stood at N31. 98 trillion ($41.59 billion) in Q3 2023, while total domestic debt was N55. 93 trillion ($72.76 billion)”
The federal government said it will spend N8. 25 trillion on debt servicing in the N27 trillion 2024 budget.
Dr. Cardoso who spoke at the ongoing IMF/World Bank Spring Meeting in Washington DC attributed “the shift in Nigeria’s foreign reserve position to debt obligations; says it is not the intention of the Bank to defend the Naira but rather to encourage the practice of willing buyer, willing seller, and price discovery.”
He expressed”optimism about sufficient liquidity and vibrancy in the Nigerian foreign exchange market.”
Dr. Cardoso reiterated the commitment of the bank to pursue orthodox monetary policy by the CBN with emphasis on trust and credibility.
The strategy of monetary policy reforms and turnaround in the Nigerian economy.
He commended the collaboration between the Central Bank and Nigeria’s fiscal authorities, stressing that cooperation is key to achieving inflation targeting framework.
CBN Governor, Olayemi Cardoso, at the meeting, shared strategy of monetary policy reforms and turn around in the Nigerian economy.”
