The worst of the naira's volatility has already passed in Nigeria, according to Cardoso.


Yemi Cardoso, the governor of the central bank, declared that the nation has already gone through the worst of the naira's foreign exchange volatility. Cardoso made this statement in a Tuesday interview with Bloomberg TV in London. The apex bank's chief stated that he is pleased with the extent to which they have been able to handle the currency problem in recent months. Cardoso clarified that while they would keep putting some macroeconomic principles into practice that will help the market, it is still a work in progress. "We are largely happy with our current progress. Following a period of turbulence, the market has shown a great deal of steadiness during the last two to three weeks.  


Hardly any change has occurred with the currency. There is now a single rate. We think this is beneficial because it enables businesses to plan ahead and indicate to prospective investors where our economy is headed. We don't think we've arrived at a place where we wish to stay. It is always a work in progress.  
Additionally, we'll use every effort to ensure that the macroeconomic fundamentals that influence the market are managed. The governor of the CBN stated, "I do believe that we have seen the worst in terms of volatility."  In Gratitude for the Naira 

On Appreciation of the Naira

The CBN president said that it depends on "a host of different issues" when asked if the naira has achieved its peak value or if additional appreciation is anticipated. This suggests that the fiscal side is a major factor in deciding the value of the currency. Cardoso responded, "Well, that's a question. I will say it depends on a whole host of different issues." In the meantime, he said that efforts are being made by the fiscal and monetary authorities to guarantee foreign exchange market liquidity.  

He claimed that when it comes to deciding on policies to control the nation's monetary condition, both parties are complementary, we also pay close attention to the way the market functions to make sure that the best value is provided. The strong cooperation between the fiscal and monetary sectors is particularly noteworthy, as Cardoso stated, "I think that complementarity is what will give us that ultimate grip on the naira in the long run." 

WHAT YOU SHOULD KNOW

Nigeria has experienced severe currency fluctuations in the foreign exchange market since last year, which has caused instability in all areas of the country's economy. The naira fell to as low as N1,900/$ earlier this year during the height of the crisis. But in May, the currency recovered to roughly N1,480/$, and it appeared to be stable, trading between N1,500 and N1,480. In order to control the currency, the CBN has implemented a number of policies and circulars, including crackdowns on the unofficial FX market, which includes BDC operators and the cryptocurrency market.  

The naira has largely stabilised vs the dollar as of this month, and the foreign exchange reserves have seen a notable rise in inflow of foreign currency. 



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