Naira Float Decision Defended by Nigeria’s Central Bank Governor

The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has defended the decision to float the naira, despite facing public criticism. He explained that the disparity between official and parallel exchange rates was leading to arbitrage and speculation, which in turn eroded market trust. Cardoso emphasized the positive impact of the decision on reducing these negative effects.The move to float the naira by the CBN Governor, Olayemi Cardoso, has been met with criticism but he believes it was a necessary step. The decision aimed at addressing the disparity between official and parallel exchange rates, which were causing issues like arbitrage and speculation. Cardoso expressed the importance of restoring market trust through this measure and highlighted the positive impacts it has had so far.