The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has reaffirmed the bank’s commitment to maintaining stability in the country’s foreign exchange (FX) market. He emphasized that the CBN would remain vigilant in identifying and addressing any bad actors undermining the naira’s stability. This statement follows the marginal depreciation of the naira at the official FX market, closing at N1,532.39/$, a slight decline of 0.08% from the previous day.
Despite the slight drop in the official exchange rate, the Bureau De Change segment remained stable, with the rate unchanged at N1,570/$. This indicates relatively steady demand for physical dollars in the informal market. The stability in the BDC rates, combined with the official market’s minor fluctuations, suggests that the naira is adjusting within a narrow range while the market reacts to recent reforms and shifting demand-supply dynamics.
The CBN has implemented several reforms aimed at stabilizing the naira, including the launch of the Electronic Foreign Exchange Matching System (B-Match) and the Nigeria Foreign Exchange Code. These initiatives are designed to promote transparency and ethical practices within the FX market. According to Cardoso, the reforms have already shown positive results, including increased liquidity and renewed foreign investor confidence, with a growing preference for the official FX window due to reduced speculative activities.
Cardoso also highlighted that maintaining FX market stability is crucial for Nigeria’s economic recovery, particularly as the country adjusts to broader fiscal and monetary policy changes. While inflationary pressures are gradually easing, he stressed that continued surveillance and oversight are essential to safeguard the naira and ensure broader financial stability. The CBN’s efforts to foster a stable FX market are part of its broader strategy to align market fundamentals and promote a resilient financial system.