The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has emphasized that economic fundamentals, not the apex bank, determine the country’s foreign exchange rates. Speaking at the launch of the Nigeria Development Update in Abuja on October 17, Cardoso affirmed his commitment to traditional central banking principles and stressed the importance of adhering to market-driven exchange rates.
Cardoso expressed optimism that stronger cooperation with fiscal authorities would enhance exchange rate stability. He highlighted efforts to boost foreign exchange inflows, noting that inflows have increased from $200 million to $600 million through strategic initiatives. Additionally, investor confidence in Nigeria is gradually improving, with many previously hesitant investors now showing interest in the Nigerian market.
The CBN Governor also pointed to a rise in Nigeria’s foreign reserves, which reached $34.7 billion in July, up by $316 million since the beginning of the month. He attributed the increase to higher oil prices, improved diaspora remittances, and the CBN’s efforts to stabilize the naira. Analysts see this development as a positive step for the economy, providing a cushion against external shocks and improving Nigeria’s ability to meet its financial obligations.