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Tag: Olayemi Cardoso

  • Remittances hit $4bn – Cardoso

    Remittances hit $4bn – Cardoso

    The unified foreign exchange regime has yielded desired results with remittances through International Money Transfers Operators hitting $4.18 billion in the first three quarters of 2024, compared to $2.33 billion in the same period of 2023.

    The Governor of the Central Bank of Bank (CBN), Mr. Olayemi Cardoso, disclosed this at the Monetary Policy Stakeholders Forum, in Abuja, this afternoon.

    According to him, “Beyond monetary policy, the bank undertook critical reforms to strengthen the financial system and ensure macroeconomic stability:

    “Unified multiple exchange rate windows to enhance efficiency in the FX market.

    “This reform yielded tangible results, with remittances through International Money Transfer Operators (IMTOs) rising 79.4 percent in the first three quarters of 2024 to US$4.18 billion, compared to US$2.33 billion in the same period of 2023.”

    Mr. Cardoso described the forum as “a focused platform for rigorous intellectual discourse, providing an opportunity to examine monetary policy formulation, implementation, and outcomes,” adding, “Unlike broader economic conferences, our discussions here are designed to address monetary policy challenges with precision, offering evidence-based insights to enhance policy effectiveness.”

  • CBN Governor: 1,000 Ex-Staff Voluntarily Exited with Full Benefits

    CBN Governor: 1,000 Ex-Staff Voluntarily Exited with Full Benefits

    The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, has clarified that the 1,000 former employees who left the apex bank in December last year did so voluntarily and were paid their full benefits.

    Cardoso made this known during an investigative hearing organized by the House of Representatives on Friday.

    The hearing was convened to probe the disengagement of the former staff and the ₦50 billion paid as terminal benefits.

    Representing the CBN governor at the session, Mr. Bala Bello, Deputy Director of Corporate Services, emphasized that the affected staff were neither forced nor disengaged arbitrarily.

    He explained that the bank’s early exit program was entirely voluntary and part of a broader effort to reorganize the institution for improved service delivery.

    “These are ways and means through which the performance of an organization is optimized by ensuring that round pegs are put in round holes,” Bello said.

    “The manpower requirement of the bank is met, balancing human resource, capital, skill, and IT requirements.”

    Bello assured the committee that the program was designed to be fully voluntary and in line with global best practices.

    “You are very much aware, chairman, that the entire world is going through a process of digitizing its operations. And then once that is done, a lot of opportunities are created, just like a lot of redundancies are also equally created,” he said.

    He added, “I’m very happy to mention, Mr. Chairman and members of the committee, that the early exit program of the Central Bank is 100 percent voluntary. It’s not mandatory. Nobody has been asked to leave, and nobody has been forced to leave. It’s a completely voluntary program that has been put in place.”

  • CBN Governor Cardoso Defends Naira Float Policy to Restore Exchange Rate Credibility

    CBN Governor Cardoso Defends Naira Float Policy to Restore Exchange Rate Credibility

    Olayemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), has explained that the decision to float the Nairain the foreign exchange market was a strategic move aimed at closing the gap between the official and parallel exchange rates, thus restoring market credibility.

    Cardoso made this statement over the weekend while addressing members of the Harvard Club of Nigeria in Lagos.

    Cardoso noted that his predecessors had considered floating the Naira but ultimately abandoned the idea, fearing massive depreciation and its ripple effects on the macroeconomic landscape.

    However, Cardoso, speaking for the first time since assuming office a year ago, said the floatation was necessary to tackle the speculative trading that thrived due to the disparity between the official and black market rates.

    “The decision to float the naira, although met with public criticism, was essential to align the official exchange rate with market reality. The disparity between the official and parallel rates encouraged arbitrage and speculation, eroding trust in the market,” Cardoso said.

    Cardoso acknowledged that the CBN’s credibility was at the core of its policy actions, adding that, “Without credibility, no policy, however well-intentioned, can succeed.”

    He stressed that the bold move was essential for addressing long-standing inefficiencies, adding that the speculative trading had reduced since the policy’s implementation, and gradual stability was returning to the currency markets.

    In his address titled “Leadership in Challenging Times: Restoring Credibility, Building Trust, and Containing Inflation,” Cardoso also highlighted the CBN’s efforts to control inflation, which remains a primary focus.

    He noted that the National Bureau of Statistics (NBS) reported recent declines in inflation for July and August 2024, indicating that the CBN’s actions were yielding positive results.

    Cardoso defended the CBN’s decision to raise the Monetary Policy Rate (MPR) to 27.25%, describing it as a “bold move” necessary to curb excess liquidity and rein in inflation. He added that, while higher interest rates were painful for borrowers, they were crucial for long-term economic stability.

    “Leadership is about making hard choices to secure long-term stability over short-term comfort in moments like these,” Cardoso said.