The naira has been on a good path since the beginning of the year until now. The currency has fallen in the last few days and was traded at about N1,550 and N1,590 at the parallel market.
Today, the naira trades around N1,585/$.
The official rates on the Central Bank of Nigeria’s Nigerian Foreign Exchange Market (NFEM) documents show that it trades around N1,538/$ at the official market. These price discrepancies in both markets appear to be more profitable for one party, and that is not the CBN, which makes stability an uphill battle.
The Central Bank of Nigeria (CBN) had a talk with a delegation of scholars from the Harvard Kennedy School (HKS) recently where they committed to sustaining the foreign exchange (FX) market stability.
The visit is part of an initiative called Africa Trek, which also has Ghana on its list. Representatives from the Harvard Business School, Massachusetts Institute of Technology (MIT) and Stanford University were also part of the conversation at the CBN headquarters in Abuja.
The CBN governor, Yemi Cardoso, broke down the progress of the apex bank in stabilising the market and containing inflation.
While he admits to the challenges confronting the Nigerian economy, Cardoso calls the process of market stabilisation a reset. He said, “As we reset the bank, we are committed to being a hub for thought leadership. The exposure you gain from institutions like Harvard is invaluable, and we see this as an opportunity to build long-term alliances.”
His statement also highlights a commitment to making room for thoughtful leadership. More so, Cardoso stated that the bank is policy-driven options are the only way forward.
