Yemi Cardoso Unveils Plans As CBN Governor, Promises Shift From Emefiele's Policies
- Yemi Cardoso, the new CBN governor, has provided insights into what Nigerians should expect from him
- He also addressed some of the CBN's policies under Godwin Emefiele's leadership
- Cardoso, alongside side four deputy Governors, was confirmed by the senate as the new CBN management team on Tuesday, September 26, 2023
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Olayemi Cardoso, the Central Bank of Nigeria (CBN) governor, has promised a policy shift in the future direction of the apex bank.
The Nation reports that one of Cardoso's plans is to shift CBN's focus away from direct involvement in development finance initiatives, which were a hallmark of former Godwin Emefiele's leadership
Source: Facebook
CBN's intervention programmes
Under Emefiele, the CBN developed over 12 intervention Programmes. They include the Anchors Borrowers Programme for farmers, the Power and Airline Intervention Fund (PAIF), and the Youth Innovative Entrepreneurship Development Programme (YIEDP).
Cardoso believes these interventions blurred the lines between monetary policy and fiscal intervention.
His words:
"In recent years, the CBN has resorted to unconventional measures to manage the economy, such as direct intervention in sectors like agriculture and manufacturing.
“While these policies may have had short-term benefits, they can also create distortions and undermine the effectiveness of monetary policy in the long run.
Therefore, there is a need to gradually phase out such unorthodox measures and transition to more conventional and evidence-based policies.
Foreign exchange plans
Cardoso also spoke on the CBN's foreign exchange policy plans, promising transparency and a market-driven management approach.
He said:
"Foreign currency management is also a challenge for the CBN. Nigeria has experienced foreign exchange scarcity, and the CBN has had to intervene in the forex market to stabilize the currency.
“However, this has resulted in multiple exchange rates and limited access to foreign exchange for businesses and individuals.
"To address this challenge, the CBN needs to adopt a more transparent and market-driven approach to foreign currency management. This could involve liberalizing the forex market, reducing restrictions, and allowing market forces to determine exchange rates.
“Overall, addressing these challenges requires a shift towards evidence-based policymaking, discontinuation of unorthodox measures, and implementing a more transparent and market-driven approach to foreign currency management.
"These changes would help restore confidence in the CBN’s operations and strengthen its ability to effectively fulfill its core functions.
Naira falls to its lowest level in history against the US dollar
Legit.ng earlier reported that the Naira again plunged to new lows on the parallel market, causing more headaches for the new CBN team.
The new team is expected to meet next week for their first monetary policy meeting and is expected to create a clear direction for the forex market.
Source: Legit.ng
