New CBN Governor Yemi Cardoso reveals plans to help Naira recover as Dollar exchange rate hit N1000

Olayemi Cardoso, the new Central Bank of Nigeria (CBN) governor, has unveiled his plans towards addressing Naira free fall at foreign exchange markets.

Responding to a series of questions asked by members of the Senate before his confirmation, Cardoso said he would implement short-term and medium plans to achieve a stable exchange rate for Naira.

One of his efforts will be to clear the foreign exchange (FX) backlog regardless of the amount.

He added that his team will employ operational and system-related measures to address the foreign exchange issues.

His words: "The exchange rate level is very worrisome. For a country we all dream of we need to have an exchange rate that is stable.

"A stable exchange rate is possible. We will implement short-term and medium-term measures. to achieve this.

"The medium-term measures have to do with the balance of payment which include having more control of our resources (Foreign earnings from oil) and ensure it is diversified."

More promises from new CBN governor

He further stressed the need to clear backlogs of forex obligations on the table of the CBN, especially from foreign companies looking to repatriate their revenues.

"We are aware of pending obligations, and our immediate priority is to verify their authenticity and promptly address them.

"We need to promptly find a way to take care of that. It would be naive for us to expect that we’ll be making too much progress if we’re not able to handle that side of the foreign exchange market."

The new CBN governor also said he would maintain price stability, revert to evidence-based monetary policies, and discontinue his predecessor’s unorthodox monetary policies to bolster the country’s naira currency.

"In the short term, we intend to implement a transparent system accessible to everyone to attract foreign investors.

“Right now, we have a situation where we are aware that there are unsettled obligations by the CBN. Whether it is $4bn, $5bn or $7bn, I don’t know but definitely the immediate priority will be to verify the authenticity and extent of what is owed.

“Number two, apart from the operational issue, there is one that is system related that involves ensuring that we come up with rules that are open, transparent that any of the players in that area understands.

We can’t expect foreign investors and portfolio investors to come; we can’t expect them if there is no open, transparent system that everyone understands.

“In setting up those guidelines one will carry the relevant stakeholders along and the comment was made earlier that one should be ready to engage everybody and hear views. Those two things, though they may seem simple, will go a long way to easing up the restrictions we are having on people (investors) that want to come in.”

"I believe this will significantly contribute to restoring confidence in the Nigerian economy and attract foreign investors interested in doing business in Nigeria.

"I have a reputation for doing things properly, and I have no intention of compromising to help anyone or granting favors to the detriment of others."