Tinubu Backs Cardoso on Reforms to Stabilise Naira, Vows Continued Crackdown on Racketeers
The Presidency has said the efforts of the Governor of Central Bank (CBN), Yemi Cardoso aimed at stabilising the naira aligns with President Bola Tinubu’s “multi-faceted approach to ridding the nation’s foreign exchange market of malign actors and sharp practices.”
It also vowed to continue its campaign against racketeers, urging Nigerians to expect a stronger naira that would reflect in a significant drop in the prices of essential commodities by the first quarter of 2025.
The Special Adviser to the President on Media and Publicity, Ajuri Ngelale, who said this on Tuesday, spoke against the backdrop of the recent series of measures rolled out by the central bank to halt the naira free fall and return the local currency to its fair value.
The CBN had rolled out several circulars and directives, leading to the rebound of the local currency from 1,900/dollar recorded in late February to nearly 1,200/dollar on Tuesday at the parallel market.
The naira, which had fallen against the greenback to over 1,500/dollar at the official market, also rose to about 1,230/dollar on Monday.
According to analysts, the CBN recent policies have played a pivotal role in the strengthening of the naira against the dollar.
Key reforms encompass the unification of exchange rate windows, liberalisation of the FX market, clearance of FX backlog obligations for banks and airlines, implementation of a Price Verification System, imposition of limits on banks’ Net Open Position, removal of the daily cap of N2bn on remunerable Standing Deposit Facility, and overhaul of the Bureau De Change segment.
A number of reforms in the FX market have adversely affected racketeers and currency speculators in the FX market and banking sector.
However, the Presidency on Tuesday vowed to sustain the momentum, saying regulatory agencies would go after racketeers and “malign actors” bent on frustrating the efforts of the government.
Beyond stabilising the exchange rate, the President also pledged to tackle inflation and bring it to a considerable rate.
