Governor of the Central Bank of Nigeria (CBN) Yemi Cardoso has responded to insinuations that the bank is defending the naira, which is the reason for declining external reserves, saying it is not defending them.
He said this on Wednesday during an event at the spring meetings of the International Monetary Fund and World Bank in Washington.
Cardoso clarified that the depleting external reserve is mostly due to factors such as debt repayments, other obligations, and depletion due to the ordinary course of business.
He also stated that there were no intentions to defend the currency with the external reserves, as it was counterintuitive.
According to him, the apex bank was already implementing a willing buyer, willing seller policy.
“It is not our intention to defend the naira,”
“The shifts you’ve seen in our reserves has really little or nothing to do with defending any naira and that’s certainly not our objective,” he stated.
