February 05, (THEWILL) – The Governor, Central Bank of Nigeria, CBN, Dr Olayemi Cardoso, has, again, stated that the naira is undervalued.
Dr Cardoso reiterated this position in an interview with Arise News Television Monday, stating that foreign investors are still interested in the Nigerian economy/ notwithstanding the state of the embattled local currency.
He, however, failed to state specifically what should be the real value of the local currency, noting, instead, that the volatility in the forex market makes it difficult to observe the fact the naira is undervalued.
“I think that given the relatively challenging times that Nigeria is in now, from a financial and economic standpoint, the different stakeholders within the government understand that collaboration is key. We hold regular meetings, we exchange different ideas, to ensure we are all heading towards the same direction.
“I think we should expect to see that we are working on the talk.
“The foreign investors come, they go; they come back the second time, they see the report of the rating agencies on how the economy is progressing; it validates what they are thinking. They see the economy progressing, with additional reforms, it continues to encourage them.That is how I see investors play today.”
He said that the policies being put in place will increase confidence in the economy and encourage foreign capital inflow which will stem the volatility, and help to stabilize the naira.
“I have said it before, and I am repeating it here, that the Naira is undervalued,” Cardoso stated.
THEWILL recalls that the CBN governor had made this claim while addressing the Nigerian Economic Summit Group (NESG) in Lagos two weeks ago, which has irked stakeholders who challenge him to state the exact extent the local currency is undervalued.
About the Author
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.