Tinubu appoints Olayemi Cardoso as new CBN Gov amid FX backlog confusion
…Names four deputies
In a bold move to tackle the challenges facing Nigeria’s Central Bank, a formidable team has been assembled. Led by the newly appointed Governor, Olayemi Cardoso, this group of financial wizards is ready to take on the woes that have been troubling the nation.
Joining Cardoso are four deputy governors, each bringing their own unique expertise to the table. Nnana Usoro, Muhammad Abdullahi Dattijo, Philip Ikeazor, and Bala M. Bello have a combined experience of over 130 years in the fields of financial services, economics, and public policy. With such a wealth of knowledge, they are well-equipped to navigate the complex landscape of Nigeria’s banking sector.
According to the CBN Act, this dynamic team will be responsible for the policy and general administration of the bank.
They will work alongside the permanent secretary of the Ministry of Finance, five directors, and the accountant general of the federation to ensure the smooth operation of the CBN.
Their appointment comes at a crucial time, as Nigeria grapples with the clearing of a significant foreign exchange backlog.
With an estimated value of $10 billion, this backlog has caused confusion and uncertainty in the market.
However, with Cardoso and his team at the helm, there is renewed hope that this issue will be resolved swiftly and effectively.
Cardoso’s appointment is initially for a term of five years, pending confirmation by the Nigerian Senate.
One of the major challenges Cardoso will face is finding a solution to clear the FX backlog and ensure stability in the exchange rate, as well as achieving a single-digit interest rate, as promised by Tinubu.
Many experts have praised the appointments, expressing their hopes that the new team will implement policies that lead to a stable FX rate and lower inflation rates.
A relationship manager at FSDH Merchant Bank Limited, Ayodele Akinwunmi believes that this is a great opportunity for positive change.
However, as the two-week deadline given by the CBN to clear the FX backlog comes to an end today, there is no indication that this has been achieved.
The pressure on the foreign exchange market continues to mount, with the naira falling to a record low against the dollar in both the parallel and official FX markets.
At the parallel market, the naira reached an all-time low of N955 per dollar as demand for the greenback intensified.
Meanwhile, at the official FX market, known as the Investors’ and Exporters’ (I&E) forex window, the naira depreciated by 2.88 percent, with the dollar being quoted at N780.00 on Thursday.
This is weaker than the previous days and indicates the ongoing challenges faced by the Nigerian currency. As Cardoso takes on his new role, all eyes will be on him to see how he tackles these pressing issues and brings stability to the Nigerian economy.
