KEY POINTS
• CBN Governor Olayemi Cardoso says the apex bank has made progress in its mandate of monetary and price stability.
• He said the bank inherited a period of currency instability, high inflation and a dysfunctional foreign exchange market.
• Cardoso said restoring the CBN to its core mandate was among the management’s key achievements since 2023.
MAIN STORY
Central Bank of Nigeria (CBN) Governor Olayemi Cardoso says the apex bank’s current management has made significant progress in restoring monetary and price stability since assuming office three years ago.
Cardoso made the assessment on Tuesday in Abuja after presenting the communiqué of the 307th meeting of the Monetary Policy Committee (MPC).
Reflecting on the management’s three years at the helm of the apex bank, the governor said it inherited an institution and economy facing a significant loss of confidence.
He said the situation was particularly evident in the performance of the naira, which was experiencing regular depreciation and making economic planning difficult for individuals and businesses.
According to him, uncertainty over the currency had also prompted some Nigerians to move their savings into foreign assets as they sought to protect their earnings.
Cardoso said the country was also facing negative assessments from rating agencies, which he said reflected limited confidence in its economic outlook without substantial reforms.
He credited the leadership team that has served at the CBN since 2023 with supporting the MPC and his administration in addressing the challenges.
One of the management’s early priorities, he said, was returning the CBN to its core mandate of maintaining monetary and financial stability.
Cardoso said the economy had also been affected by substantial Ways and Means financing, which stood at N23.7 trillion, while CBN interventions exceeded N10 trillion.
He linked the scale of Ways and Means financing to the inflationary pressures facing the economy at the time.
The governor also pointed to weaknesses in the foreign exchange market, where multiple exchange rates existed, as another major challenge inherited by the current management.
He said the central responsibility of the bank was to restore stability while maintaining both price and financial stability.
Cardoso described the decisions taken by the bank over the past three years to achieve those objectives as among the management’s proudest moments.
THE ISSUES
- Cardoso’s assessment places the CBN’s three year tenure against the backdrop of currency depreciation, inflationary pressure and weakened confidence in the financial system.
- The governor identified the previous scale of Ways and Means financing and CBN interventions as factors that complicated the monetary environment inherited by the current management.
- Multiple exchange rates were another challenge highlighted by Cardoso. He said restoring stability in the foreign exchange market was part of the bank’s responsibility.
- Returning the CBN to its core mandate has been presented by the governor as a central feature of the management’s approach since 2023, with monetary and financial stability identified as key objectives.
WHAT’S BEING SAID
“The first thing, given the context that I have laid here today, was that we were able to take the bank back to its core mandate.” – Olayemi Cardoso, CBN Governor
“Our responsibility was to restore stability and maintain both price and financial stability.” – Olayemi Cardoso, CBN Governor
“Our proudest moments have been in our ability over the years to take the right decisions that have been able to take us back there.” – Olayemi Cardoso, CBN Governor
WHAT’S NEXT
Cardoso did not outline specific new measures in the supplied remarks. His comments focused on the CBN’s three year record and the steps taken to restore monetary, price and financial stability.
BOTTOM LINE
Cardoso says the CBN has spent the past three years addressing currency instability, inflationary pressures, excessive Ways and Means financing and weaknesses in the foreign exchange market. He described restoring the bank to its core mandate and rebuilding stability as key outcomes of the period.
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