Naira appreciation: 13 policies Cardoso made to save FX rate

 

The central bank of Nigeria (CBN) government Yemi Cardoso has played a significant role in the appreciation of the naira against the dollar.

 

The drastic change in the FX rate to naira has been caused by some intervention policies of the CBN governor, Cardoso’s seven months in office have sparked reactions toward his achievements so far.

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Here are the policies put in place by the CBN governor to save the FX rate

 

Unified the exchange rate to remove black manier arbitrage. FX is now

cheaper at the block market

 

Sanitized BDCs revoked the licenses of BDCs who were set up to round trip FX. From over 5.000 BOC to ves than 1500.

 

NNPC remitter transfered directly to CBN coffers

 

Stopped direct CBN intervention

 

Stepped ways and means to FG

 

Revised the guistelines for IMTOs by allowing IMTOs to engage in willing buyer and willing seller marat

 

Unbanned 41 items  that drive demand to the paralled mortet.

 

Banned the use of foreign carency denominated collateral for Naira loans

 

Re-adjusted Bankes Net Open position limits on foreign currency assets, which drove about Silan Into the market

 

Revision of Foreign cash pooling by Intemotional Of Companies

 

Sale of foreign exchange the eligible BDCs to meet retall demand for eligible invisible transactions

 

MPR hike to combat excess liquidity

 

Cleared FX backlog that was putting pressure on the reserve