The Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele, on Monday expressed optimism that the nation’s foreign reserves would grow to 50 billion dollars before the end of the year. Emefiele said this at the 25th Seminar for finance correspondents and business editors with the theme: “Sustaining Economic Growth Beyond Recession”, in Uyo.
Emefiele, represented by Mr Edward Adamu, Deputy Governor, Corporate Services, said the reserves would continue to grow following the recent accretion the nation had recorded. He said that the economic recovery would consolidate as the sentiments improved in the macro economy and supported by proactive monetary, trade, industrial and fiscal policies.
The governor also said the apex bank expected a continued uptick in Gross Domestic Product (GDP) growth with a positive spillover to improved unemployment rate. On the foreign exchange market, he said the rate stability would continue.
“As we entrench and sustain the transparency in the FX market, as foreign FX reserves accretion continues, market confidence and improved sentiments remain. We expect that the exchange rate will not only be stable but would begin to appreciate against major currencies. The adverse competitiveness outcome which such appreciation may entail will be adequately mitigated by proactive policies to ensure that our balance of payments position is not undermined.”
According to him, there is also need for strong policy coordination. “Finally, we expect a re-doubling of strong policy coordination, collaboration and cooperation which flourished during the very difficult times,” he added.
He said that the need was greater now than ever for a robust policy coordination between the key aspects of economic policymaking space to sustain the recovery.
This, he said, would include fiscal, monetary, exchange and trade policies, which must be targeted at protecting farmers to boost agricultural outputs and support local companies.
Emefiele said it would also enhance manufacturing and industrial capacities, to diversify the economy away from oil and fossil fuels.
