CBN strengthens Forex market, Foreign reserves hit $40b

For the first time in three years, Nigeria’s foreign reserves surpassed the $40 billion mark, marking a significant milestone in economic recovery efforts.

Central Bank Governor Olayemi Cardoso attributed the rise to key reforms.

He spoke during a meeting with the Assistant Governor for Monetary Affairs at the Saudi Arabian Central Bank (SAMA), Talal Al-Humond, on the sidelines of the inaugural Conference on Emerging Market Economies in Riyadh.

A statement by CBN said the reserves were at their highest in nearly three years.

The reforms include the adoption of an electronic matching system to enhance transparency in the foreign exchange market and the introduction of a foreign exchange code of ethics.

The code, which all Nigerian banks have signed onto, ensures strict adherence to market rules, fostering confidence among investors and market participants.

At the conference organised by the Saudi Ministry of Finance and the International Monetary Fund (IMF) Regional Office, Cardoso advocated for stronger economic ties between Nigeria and the Middle East.

He noted that Nigeria could learn valuable lessons from Saudi Arabia’s approach to infrastructural development, economic diversification, and tourism investment.

As part of efforts to boost Nigeria’s economic position, the CBN governor reaffirmed his commitment to working closely with the Nigerian diaspora community in the Middle East.

He stressed that increased remittance flows from Nigerians abroad would play a crucial role in strengthening the country’s financial sector.

Cardoso said: “The CBN will continue implementing policies that enhance macroeconomic stability, promote private sector growth, and create high-quality jobs.”

During a panel discussion moderated by Jihad Azour, Director of the Middle East and Central Asia Department at the IMF, Cardoso addressed critical reforms in Nigeria’s financial markets.

He highlighted that Nigeria had previously experienced a significant gap—sometimes as wide as 60 per cent—between the official and parallel market exchange rates.

However, he noted that due to consistent policy direction, improved market confidence, and greater transparency in forex trading, the exchange rate gap has now narrowed to approximately 4-5 per cent.

Loading

LEAVE A REPLY

Please enter your comment!
Please enter your name here