Elumelu Says New CBN Head Cardoso to Halt Naira Slide

Tony Elumelu, the Chairman of United Bank for Africa Plc and Heirs Holdings said new leadership at the Central Bank of Nigeria (CBN) will help restore confidence in the nation’s currency, the naira.

“The reason people are accumulating dollars is not because they need it now, it is because of lack of confidence,” Elumelu said in an interview with Bloomberg TV in New York. The new central bank team is “very capable” and will be able to bring confidence, he said.

Olayemi Michael Cardoso formally assumed duties as acting governor of the Central Bank of Nigeria on Friday, pending his confirmation by the Senate.

The naira has depreciated to 992 per dollar in the black market, according to data from  street traders.

The rate compares with 900 naira at the start of the month, and is some 30% weaker than its official Thursday close of 772.98 on the FMDQ trading platform.