CBN to protect the naira through stable exchange rate

Posted by Grand News | 15 October 2018 | 1,119 times

CBN Governor, Godwin Emefiele.

Governor of the Central Bank of Nigeria, Godwin Emefiele said on Sunday that it is targeting a stable exchange rate to avoid depreciation of the naira.

He said as good as building reserves is, the present economic situation cannot allow that.

According to Daily Trust, Emefiele said this at the final day of the International Monetary Fund (IMF) and World Bank Group (WBG) Annual Meetings in Bali, Indonesia and after the Nigerian delegation’s meetings with investors and institutions.

Emefiele said all frontiers and developing markets had suffered depreciation and loss of reserves.

“We are very conscious of the need to build buffers but, unfortunately, I must say that we are in the period where it will be difficult to talk about building reserve buffers.

“We can only build reserve buffers if we want to hold on to the reserve and then allow the currency to go, and wherever it goes is something else.

“So it is a choice we have to make and at this time the choice for Nigeria is to maintain a stable exchange rate so that businesses can plan and we do not create problems in the banking system assets,” Emefiele said.

Source: Grand News

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