CBN Governor, Cardoso…gives scorecard of 1yr in officeBy Emeka Anaeto, Business EditorThe Governor, Central Bank of Nigeria, CBN, Mr Olayemi Cardoso, has said that the apex bank under him took the bold step of floating the Naira in the foreign exchange market in order to bring the official exchange rate closer to market reality.
About three CBN Governors before Cardoso had toyed with the floatation option when they faced constant excess demand for foreign exchange and exchange rate pressures.
Floating the naira, a decision met with considerable public criticism, was necessary to bring the official exchange rate closer to market reality.
‘‘The disparity between the official and parallel rates had encouraged arbitrage and speculation, eroding trust in the market.
He explained further: “Our decision to raise the Monetary Policy Rate (MPR) to 27.25% was a bold move.
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