Yemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), has disclosed that the country’s foreign exchange market has seen a substantial boost of over $1 billion in liquidity in recent days.
This announcement was made by Governor Cardoso during a presentation to the Senate on Friday in Abuja. He attributed the positive momentum in the FX market to recent reforms initiated by the apex bank.
Assuring the Senate of the effectiveness of these reforms, Governor Cardoso highlighted that they have sparked considerable interest from foreign portfolio investors. This increased interest has resulted in a significant uptick in the supply of foreign exchange to the Nigerian economy.
“We have already begun to see shifts in a positive direction. Indeed, we have already begun to see positive results with significant interest from foreign portfolio investors, which has already started supplying the much-needed foreign exchange to the economy. For example, over the past few days, we have seen over $1 billion come into the market. And this, quite frankly, is the answer to the question,” Governor Cardoso stated.
In recent weeks, the Nigerian naira experienced a decline, approaching the N1500/$ threshold on the official market. In response, the CBN implemented several measures, including the removal of the cap on exchange rates quoted by International Money Transfer Operators (IMTOs).
Furthermore, the CBN announced its intention to phase out its intervention finance programs.
Governor Cardoso’s remarks shed light on the central bank’s efforts to stabilize the foreign exchange market and bolster the Nigerian economy amid currency challenges.
Under the leadership of Governor Godwin Emefiele, the CBN has implemented various development programs, encompassing sectors such as agriculture, manufacturing, MSMEs, and energy. Notably, the anchor borrower program alone received approximately N1.01 trillion in funding.
The recent influx of foreign exchange signals a positive outlook for Nigeria’s economic landscape, indicating increased investor confidence and potential for sustained growth.
Creditt: Nairametrics
