JUST IN: Nigeria Gaining Massively In Foreign Exchange Market – Says CBN Gov. Cardoso

The Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, asserted on Friday (today) that Nigeria is beginning to gain massively in the foreign exchange market.

According to him, the foreign exchange market has experienced a substantial increase in liquidity, surpassing $1 billion, in recent days.

The apex bank’s governor stated this today during a presentation to the Senate committee in Abuja.

Cardoso, who was defending the current inflation rate, among other issues forcing Nigerians to lament, highlighted the positive impact of the recent reforms implemented by the apex bank, which have led to an upward trend in the FX market.

The CBN governor, however, assured the Senate that these reforms have garnered considerable attention from foreign portfolio investors, indicating a strong interest in 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 was a concern that has already begun to supply the much-needed foreign exchange to the economy.

“For example, upward of the last few days. We have had over $1 billion that have come into the market. And this, quite frankly, is the answer to the question,” he said.

The CBN governor stated that based on the available data, he can confidently state that the market has been positively responding to the policies implemented by the apex bank.

He further emphasized that the measures implemented to enhance the supply of US dollars in the Nigerian economy have the potential to effectively control the volatility of the exchange rate and subsequently reduce inflation.

However, he highlighted the importance of Nigeria as a country moderating its demands for foreign exchange to ensure the sustainability of these measures.

While the CBN is diligently working towards restoring credibility to the central bank, he reiterated that the primary factor influencing the exchange rate is the demand for US dollars for both business and personal purposes.

Additionally, the CBN Governor assured that inflation is expected to decrease this year through the implementation of the inflation targeting framework, with a projected moderation of 21.1 percent.