CBN Not Using Foreign Reserves To Defend Naira — Cardoso

The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, says the country is not using its foreign reserves to defend the naira.

He stated this on Wednesday in Washington DC where he is attending the International Monetary Fund-World Bank Spring Meetings.

Cardoso said $600m came into Nigeria’s reserves account within the last two days.

The naira has appreciated against the dollar in recent weeks, gaining over 40%, from about N1,900/$ to about N1,000/$1 now. But while the naira rebound, Nigeria’s foreign reserves are dwindling, dropping to about $32.29 billion on April 15 — the lowest level in over six years.

Cardoso said, “What you’ve seen with respect to the shift in our reserves is normal in any country’s reserves where for example, debt are due and certain payment needs to tbe made, they are made because that is also part of keeping your credibility.

“Other times money comes in, takes it up again, between yesterday and today, about $600m that came into the reserves account. We are looking towards a market that operats by itself, willing buyers, willing sellers and price discovery.

“The shift in our reserves has really little or nothing to do with defending naira and that is certainly not our objective.”