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Central Bank of Nigeria Committed to Fair and Efficient Markets – Cardoso

The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso says the apex bank is dedicated to ensuring fair and efficient markets.

Speaking recently at the Harvard Club of Nigeria in Lagos, Cardoso emphasized the importance of trust in central banking, stating that “trust is the currency of central banking”.

He explained that the CBN’s decision to implement the Electronic Foreign Exchange Matching System (EFEMS) aims to enhance transparency and provide accurate oversight of foreign exchange transactions.

Cardoso, who marks his first year as CBN Governor, acknowledged that leadership requires making tough decisions.

He stressed that the Bank is committed to reconsidering decisions if they fail to meet their objectives.

The CBN’s core focus, he noted, is on restoring credibility, building trust in the financial system, and containing inflation.

During his address, Cardoso reflected on his journey as CBN Governor. He highlighted that floating the naira, despite initial criticism, was necessary to align the official exchange rate with market reality.

In his words, “This decision has reduced speculative trading and encouraged stability in currency markets. Containing inflation remains a top priority for the CBN.”

Although the Bank has not yet met its target, recent declines in inflation rates reported by the National Bureau of Statistics (NBS) in July and August 2024 indicate progress.

The apex bank Governor highlighted key leadership lessons, emphasizing the importance of focusing on core objectives, effective communication, and transparency.

He noted that leaders must prioritize price stability, avoid distractions, and maintain open communication to foster trust.

Cardoso emphasized that leadership involves making difficult choices to ensure long-term stability.

The apex’s bank commitment to transparency and sound monetary policy is evident in its decision to raise the Monetary Policy Rate (MPR) to 27.25%.

As the CBN continues to navigate economic challenges, Cardoso’s leadership is prioritizing fairness, efficiency, and transparency in the financial markets.

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