Cardoso Vows to Continue Fight Against Inflation
By Patience Ikpeme
Central Bank of Nigeria (CBN) Governor Olayemi Cardoso has insisted that the Monetary Policy Committee’s (MPC) remains committed to combating inflation using conventional methods.
In an interview with Bloomberg in London, Mr. Cardoso addressed key issues facing the Nigerian economy, focusing on the naira’s stability and inflation rates.
He highlighted a positive development – a deceleration in the month-on-month inflation rate. He assured Nigerians that the MPC remains vigilant, closely monitoring inflation trends and working towards its moderation. “MPC members will continue to monitor the trajectory and are determined to ensure that they put inflation under control,” he asserted.
Mr. Cardoso pointed to a period of stability following the previous volatility in the foreign exchange market. He expressed optimism regarding recent improvements in market liquidity and a return of confidence among market participants. Attributing this change to increased liquidity and a calmer approach from both buyers and sellers, he explained, “In the past, people were panicking and front-loading their requests… Now, a lot of that has calmed down. There’s no inclination to do that because liquidity has returned to the market.”
The CBN Governor hailed the significant achievement of merging disparate exchange rates into a more unified system. “We had two different rates; right now, we more or less have one rate. And we believe that this is good. It allows companies to plan,” he stated, emphasizing the importance of a predictable exchange rate for economic planning and investment.
Cardoso expressed confidence in the current market dynamics, where willing buyers and sellers operate freely. He acknowledged this as a factor contributing to the naira’s stability. However, he stressed the importance of continuous observation and management to ensure the market benefits all participants.
He emphasized the crucial role of coordinated monetary and fiscal policies in achieving economic stability and noted that collaboration is essential for managing the macroeconomic fundamentals that influence the market, aiming to deliver the best value for the naira.
The recent slowdown in inflation, coupled with Governor Cardoso’s unwavering commitment to tackling inflation, offers a glimmer of hope for Nigerians. While challenges remain, the CBN’s efforts to stabilize the naira and curb inflation are vital for creating a more predictable and sustainable economic environment.
