Naira Will Stabilise As Foreign Investments Come In – Cardoso

CBN Raises Monetary Policy Rate To 22.75%

The Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, has said the Naira will stabilise as foreign investments come in.

In an interview with Arise Television on Monday, Cardoso said the reforms of the Bola Tinubu government are encouraging investors to return to the country.

The CBN boss said the foreign investors have taken an interest in understanding the reforms and how the economy has progressed.

Cardoso asserted that as international investors invest in Nigeria, foreign exchange volatility will reduce, resulting in the naira’s stability.

He said “Today, I would say that we have a situation where a lot of foreign portfolio investors are very interested in coming back to the Nigerian market.

“If there’s any group that has taken a methodical interest in understanding the reforms that are taking place and see how it is taking the country to a direction they believe is arrival, it is the foreign investors.”

Cardoso said having crude oil sales funds in the central bank boosts the confidence of foreign investors in Nigeria, which leads to a stable economy.

He added; “The recent move to have NNPC and some of the other MDAs move their funding straight to the central bank also sends a very powerful signal and boosts investors’ confidence.

“It is in the right direction, as the confidence comes back and their money starts coming in, volatility begins to reduce. As the volatility reduces and the foreign exchange market stabilises, the naira, which is currently undervalued, will stabilise.”