Cardoso: FG considering US diaspora bond, targets $1bn monthly remittances

Cardoso: FG considering US diaspora bond, targets $1bn monthly remittances

Olayemi Cardoso, governor of the Central Bank of Nigeria
(CBN), says the federal government is considering a diaspora bond in the United
States next year and is targeting remittance inflows of $1 billion monthly.  Cardoso spoke on Thursday in an interview with Reuters on
the sidelines of the International Monetary Fund (IMF) and World Bank meetings
in Washington, DC. The CBN governor said Nigerians abroad are eager to invest
and have already more than doubled the remittances they send home since the
current government implemented substantial reforms in 2023. As a result, Cardoso said a diaspora bond in the United
States “could be on the horizon” in 2025.  “They really want to
invest… beyond just financially,” Cardoso said. “Our currency has now become extremely competitive and
cheap. So they see the opportunity of taking positions in assets back home and
in businesses back home.” Cardoso said CBN’s efforts to restore investor confidence
were successful, and that painful reforms are paying off. The CBN governor said remittances hit $600 million in
September, from $250 million a month in spring this year and authorities are
targeting $1 billion a month. “I would be surprised if we are not there by this time next
year,” he said. Cardoso said the weak naira could help long-drawn efforts to
diversify the economy away from oil. “Now that our currency is relatively competitive… there
should be the opportunity for those who have relied so much on importation to
now beef up the productive activity that has so greatly eluded us over these
years,” he said. The CBN governor said the apex bank would be “vigilant” in
monitoring inflation and allowing economic data to drive interest rate
decisions. He also said policy consistency would attract longer-term
foreign investor cash, adding that so far, investors were still testing the
system. “Only time can show that you can stay the course,” he said. Cardoso said his meetings with investors, rating agencies
and Nigerians abroad had provided “an element of validation”. 



























































In April, the federal government said it was considering the
issuance of a diaspora bond to boost remittances.

Source: Cardoso: FG considering US diaspora bond, targets $1bn monthly remittances

 - NigerianEye
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