The Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, highlighted that the value of the Naira is intricately tied to the availability of foreign exchange.
Addressing the House of Representatives in Abuja on Tuesday, Cardoso likened the determination of the exchange rate to the principles of supply and demand, akin to how prices for goods such as cows or cars are established.
Cardoso emphasized that the exchange rate fluctuations in Nigeria stem from a combination of reduced availability of dollars alongside heightened demand.
He pinpointed the increased number of Nigerian students pursuing education abroad as a significant factor contributing to the scarcity of forex and the depreciation of the Naira.
READ ALSO: Nigerian Digital Currency Transactions Up 63% Says Central Bank Boss
He shed light on the escalating import expenditures over the years, placing additional strain on the forex reserves.
Despite these challenges, Yemi Cardoso assured that the CBN is resolutely dedicated to prioritizing price stability and fostering confidence in the Nigerian economy.
He articulated the bank’s commitment to implementing policies aimed at creating a stable macroeconomic environment and enhancing livelihoods across Nigeria.