Cardoso Highlights Importance Of Currency Management

Governor of the Central Bank of Nigeria (CBN), Mr Olayemi Cardoso, has emphasised the crucial role of currency management and forecasting in maintaining economic stability as an essential function of central banks.

He made this known during his keynote address at the opening session of the West African Institute for Financial and Economic Management (WAIFEM) regional workshop on currency management and forecasting in Abuja yesterday.

Cardoso stressed that effective currency management is a critical function of central banks, enabling them to regulate the money supply, control inflation, and maintain financial system stability.

“Currency management relates to planning, designing, issuing, and withdrawing currency from circulation. These processes ensure the integrity, availability, and value of the currency. Therefore, currency management is one of the critical functions of central banks,” he added.

The CBN governor also highlighted the need for Central Banks to safeguard the value of the currency through various measures, such as initiating policies relating to the issue and redemption of currency initiatives to prevent and minimise money laundering and counterfeiting and adequately meet the demand for currency by the public.

Speaking earlier in his welcome address, the director general of WAIFEM, Dr Baba Musa, noted that the workshop’s objective is to explore key challenges confronting Central Banks in currency management and how they are tackled.

He added that though efforts are being made towards achieving a cashless economy, the important role of currency management as an integral part of overall economic management calls for a sustained effort by all stakeholders.

The conference, attended by Central Bank staff from across Africa, aims to share best practices and discuss innovative solutions to address the evolving challenges in currency management.