…….. says improvement in health Institutions, Education tonic for forex stability..
The Governor of Central Bank of Nigeria CBN,Dr Olayemi Cardoso, says the reforms initiated to strengthen the foreign exchange (FX) market have begun to see a” positive shift “with an inflow hitting over $1billion “in the last few days”
Cardoso spoke on Friday during an appearance before a joint Senate Committee on Finance , Banking and Other Financial Institutions on Friday.
The Apex bank chief said though the bank does not have the magic wand to stabilise the foreign exchange, it is doing a lot to restore confidence in foreign portfolio investors
.“Indeed, we have already begun to see positive results with significant interest from foreign portfolio investors which was a concern that has already begun to supply the much-needed foreign exchange to the economy.
“For example, the upward trend of the last few days. We have had over $1 billion that have come into the market. And this, quite frankly, is the answer to the question.”Cardoso told the committee
He however urged moderation in the demand for foreign exchange
” We must moderate our demands for forex. Where there are opportunities to substitute locally as we should”
Cardoso cited Education , Medicals and Import bills as putting pressure on foreign exchange supply explaining that if there was an improvement on the education and Health sector, people won’t travel abroad to seek such services.
” The total quantum for education and medical is more than our external reserves.If we can up our game on education and medicals, then there won’t be the need for our people to go abroad ” he said.
On inflation in the country, Cardoso said the adoption of a single rate monetary policy was deliberate to improve investment credibility ” We are working very hard to bring back credibility to the CBN and many of the investors who over the years have considered the environment inimical”
