The Central Bank of Nigeria (CBN) has announced that its monetary and foreign exchange reforms are beginning to deliver measurable results, with the gap between the official naira exchange rate and Bureau de Change (BDC) rates narrowing to less than 2%. The apex bank also revealed that Nigeria’s external reserves have climbed above $52.5 billion, reflecting growing confidence in the country’s economic direction and renewed optimism among investors.
Speaking at the CBN Fair in Gombe, Governor Olayemi Cardoso, represented by the Acting Director of Corporate Communications and Investor Relations, Hakama Sidi-Ali, said the reforms introduced since 2023 have significantly improved stability in the foreign exchange market. According to him, the stronger naira is the result of disciplined monetary policies, exchange rate reforms, and greater transparency in the FX market, all of which have helped reduce the long-standing gap between official and parallel market rates.
The CBN also highlighted several initiatives introduced over the past 34 months to strengthen Nigeria’s financial system and support long-term economic growth. These include the unification of the foreign exchange market, banking sector recapitalisation, the introduction of the non-resident Bank Verification Number (BVN), the B-Match foreign exchange trading platform, and the Nigeria Payments System Vision 2028. The bank believes these measures are creating a more transparent financial environment, encouraging investment, generating employment opportunities, and supporting efforts to reduce poverty.
While the central bank acknowledged that external reserves recently recorded a slight decline after reaching a high point, officials stressed that reserve levels remain significantly stronger than they were just weeks ago. The reserves are still well above June’s closing balance, despite a temporary drop of about $114 million over seven days. At the same time, the naira appreciated slightly in the official market, closing at N1,362 per dollar, compared with N1,365 per dollar the previous trading day, reinforcing signs of improved currency stability.
The CBN’s latest update comes shortly after the Monetary Policy Committee retained the benchmark interest rate at 26.5%, while leaving other key monetary policy parameters unchanged. The decision reflects the bank’s commitment to controlling inflation without disrupting the progress already made in stabilising the foreign exchange market. As Nigeria continues to navigate economic challenges, the central bank maintains that consistent reforms, stronger reserves, and improved investor confidence will remain central to building a more resilient economy.
source: nairametrics
