Naira Free Fall: Uncertainty As CBN Gov Vows To Go Against Some Banks

The Governor of the Central Bank of Nigeria, Olayemi Cardoso, has pledged to implement stringent measures to address infractions within the country’s banking sector, emphasizing the need for a robust regulatory framework.

During the Monetary Policy Committee meeting held in Abuja on Tuesday, Cardoso underscored the importance of proactive regulatory efforts to curb malpractices in the banking industry. He stated, “We are committed to creating an aggressive regulatory environment to address infractions and ensure the integrity of Nigeria’s banking system.”

Cardoso further announced ongoing investigations aimed at identifying and addressing breaches within banks, emphasizing the formulation of stringent regulations to cleanse and fortify the nation’s foreign exchange market.

In response to inquiries regarding measures to enhance foreign exchange trading, Cardoso disclosed that Nigeria’s foreign reserves had surged to $34 billion as of February 20, marking a notable increase from the $32.23 billion reported at the end of January.

Despite the recent depreciation of the naira to unprecedented lows following the administration’s decision to float the currency and unify exchange rate windows, Cardoso reassured stakeholders of the apex bank’s proactive stance.

He said, “We are transitioning to a highly assertive regulatory environment, and the CBN will exert all necessary efforts to combat arbitrage facilitated by banks and Bureau De Change operators.”