Nigeria’s Central Bank governor, Olayemi Cardoso, says he’s “relatively pleased” with the naira’s recent stability.
In an interview with Bloomberg TV on Tuesday, Cardoso affirmed that the naira’s high volatility would not resurface again.
He said “I do believe that we have more or less seen the worst in terms of volatility,” Cardoso said.
“We are also very alive to observing the way and manner in which that market operates and ensuring that it gives the best value that can be accomplished using certain tools.”
Cardoso feels that the multiple interventions implemented by the CBN have helped soothe the volatility of the naira stating that the monetary policy committee “will do everything possible to curb inflation”.
The naira has been relatively stable this month, trading in a narrow range of 1,473 to 1485 per US dollar on the official market.
Recall at its MPC meeting in May, the CBN raised its benchmark interest rate to a record 26.25 percent to attract dollar inflows, reduce volatility, and control inflation, which soared to a 28-year high of 33.95 percent.
To stabilize the market, the apex bank combines 750 basis points this year with a massive naira liquidity mop-up through frequent bond sales and dollar inflows from external lenders.
Many experts believe the exceptional tranquility of the naira is attributable to new FX inflows into the economy.
