Central Bank of Nigeria Governor Yemi Cardoso has addressed concerns about the foreign exchange (FX) rate volatility, stating that fluctuations are to be expected and cannot be resolved overnight.
Speaking at a joint briefing during the World Bank/IMF Spring Meetings in Washington DC, Cardoso assured Nigerians that the CBN is actively working to achieve a stable exchange rate.
Cardoso acknowledged that fluctuations in the exchange rate are inevitable but noted recent signs of the naira strengthening.
He emphasized the CBN’s commitment to ensuring a stable exchange rate through continuous efforts to determine an appropriate price level.
Furthermore, Cardoso revealed that the CBN aims to double current diaspora remittance flows, acknowledging the ambitious nature of the target but expressing confidence in Nigeria’s ability to achieve it.
He also highlighted positive responses from foreign portfolio investors (FPI), indicating ongoing engagement and dialogue to update investors on reforms and foster positive sentiment.
”The CBN’s proactive measures to address exchange rate volatility and enhance investor confidence in Nigeria’s economy is on course,” he stated.
Recall that the CBN recently introduced a revised regulatory framework for Bureau De Change (BDC) operations to address excesses and enhance transparency in the foreign exchange market.
As part of ongoing reforms, the CBN now mandates foreign exchange sellers to BDCs transacting $10,000 and above to declare their sources of forex.
Additionally, sellers must comply with anti-money laundering/combating the financing of terrorism (AML/CFT) regulations.
