The CBN Governor stated that the new policies by the apex bank, ushered in an era of accessibility to foreign exchange, eliminating the need for personal connections within the banking sector.
The Central bank Governor, Cardoso, revealed these transformative policies during a pre-recorded interview with Arise TV on Monday, February 5, 2024.
Cardoso emphasized that the primary objective of these reforms is to eradicate the need for Nigerians to have personal connections within the central or commercial banks to secure foreign exchange. The governor highlighted the importance of creating a transparent system where individuals can easily access foreign exchange without facing the challenges of a convoluted process.
Over the past months, the CBN has diligently crafted policies aimed at stabilizing the foreign exchange market and eliminating the historical fluctuations in the exchange rate. Cardoso expressed optimism about the impact of these measures, stating, “We have looked at this over the past months and come up with certain policies which are focused on creating an environment where liquidity comes back to the market and where we can see a more vibrant market than we had before.”
The CBN governor envisions a scenario where the foreign exchange process operates on an open and transparent basis, devoid of personal connections. He stated, “Ultimately, I see a situation where people who require foreign exchange don’t have to know anybody in the banks in either the central bank or the commercial bank.”
Cardoso emphasized that an open and transparent system would eliminate distortions, encouraging both foreign investors and local entities to participate in a more active market. He stated, “A system that is open and transparent creates an environment for distortions to go away. And for those who want to bring in foreign exchange, and those who want to demand it can do so on an open basis, willing buyer, willing seller basis and therefore, the market becomes more active, and the price is eventually discovered at a level that makes sense.”
Furthermore, Cardoso revealed that the CBN’s forward-looking policies have already captured the attention of foreign investors who are now considering a return to the Nigerian market.
