President Bola Tinubu has raised concerns over what he labels a “cacophony of postulations” from different directions on the nation’s foreign exchange, adding that it only contributes negatively to the market.
The president who wrote on Thursday on his official X (formerly Twitter) account on the CBN and monetary policy appealed to the governors to be patient with the CBN governor to fulfil his designated mandate.
According to the president, not all opinions on the foreign exchange market are expert, noting the entrusted mandate to CBN governor Yemi Cardoso for currency stabilization.
He said,
- “On monetary policy and the CBN, I urge all governors to trust the Central Bank of Nigeria with the management of our country’s monetary policy and emphasized the need for designated institutions to effectively fulfil their mandate.
- “The “cacophony of postulations” on the fluctuation of foreign exchange rates is adversely affecting the market. Not everyone can be an expert.”
Speaking further, the president noted that if the CBN governor fails to carry out his mandate on currency stability, he will not hesitate to “quickly” remove him from the system.
- “If we have assigned someone a task, we must allow them to perform it.
- “If they fail, then we must find a way to quickly remove them from the system,” he added.
What you should know
- The foreign exchange market continues to struggle with currency stability despite multiple policy reforms from the CBN governor, Yemi Cardoso.
- So far, the CBN has released multiple circulars, rolling out different monetary policies in an attempt to stabilize the naira.
- Nairametrics recently reported that CBN has announced significant reforms in the foreign exchange market, signalling a stride towards a market-driven exchange rate mechanism, potentially paving the way for a free float of the Naira.
- Meanwhile, the Naira continues to plummet against the dollar, trading at N1503 to a dollar as of yesterday, February 15, according to Nairametrics daily FX watch.
- One CBN’s recent circular outlines various changes, including the discontinuation of a cap on the spread of interbank foreign exchange transactions and the lifting of restrictions on the sale of interbank proceeds.
