The World Bank has extended support to Yemi Cardoso, the governor of the Central Bank of Nigeria, regarding his exchange rate policy. The global bank thinks the policy is the appropriate course of action and that it is a critical step toward Nigeria’s economic recovery. Right now, the official market value of the naira is over N1,500, while the black market value is close to N1,700.
The foreign exchange unification strategy of Central Bank Governor Olayemi Cardoso has the backing of Indermit Gill, the Chief Economist and Vice President of the World Bank. Gill also praised the CBN governor’s strategy for controlling inflation, noting that raising interest rates by more than 800 basis points over the previous nine months was a positive move.
On Monday, October 14, 2024, in Abuja, Gill made these statements during the 30th Nigerian Economic Summit speech.
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has raised interest rates five times under Yemi Cardoso’s direction. The benchmark rate was first increased from 18.75% to 22.25%. It was then increased to 24.75%, 26.25%, and finally, in July 2024, by 50 basis points to 26.75%. It has consistently hovered around N1,650 per dollar in the official market, but it has reached N1,700 in the black market. World Bank acknowledges challenging economic conditions. Gill continued by acknowledging that although the policies of Tinubu’s administration have caused suffering for many Nigerians, particularly the weak, he emphasized that these policies are essential to the country’s economic rebuilding.
