By Anastasia John E.
The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has issued a stern warning to those undermining the country’s foreign exchange (FX) market, pledging to eliminate “bad actors” and practices to ensure stability and foster economic recovery.
Speaking at the February 2025 Monetary Policy Committee (MPC) meeting, Cardoso emphasized the CBN’s unwavering commitment to maintaining a healthy FX market, a crucial element in controlling inflation and strengthening the broader economy.
“We must maintain a heightened level of surveillance in our foreign exchange market and root out any bad actors and practices that threaten the smooth functioning of the market and stability of the exchange rate. The Central Bank has an unwavering commitment to this objective,” Cardoso stated in remarks published on the CBN’s website on Tuesday.
Cardoso highlighted the positive impact of recent CBN reforms, including the introduction of the Electronic Foreign Exchange Matching System (B-Match) and the Nigeria Foreign Exchange Code. He asserted that these initiatives have boosted transparency, increased investor confidence, and attracted foreign investment, export earnings, and remittances, leading to improved liquidity.
The CBN Governor pointed to tangible results of these reforms, such as a strengthening Naira and a reduction in speculative activities. He noted that more FX demand is now being channeled through official channels, diminishing arbitrage opportunities between the official and parallel markets, ultimately stabilizing the Naira and restoring confidence in the financial system.
While acknowledging a recent moderation in inflation following the rebasing of the Consumer Price Index (CPI), Cardoso cautioned against complacency. He stressed that inflationary pressures, particularly from food prices and long-standing structural issues, remain a significant concern.
Cardoso underscored the importance of continued collaboration between monetary and fiscal authorities to sustain the downward trend in inflation. He referenced the recent Monetary Policy Forum where stakeholders committed to enhanced coordination.
The Governor also highlighted positive macroeconomic indicators, including a favorable current account balance, increased oil production, and healthy external reserves of $39.4 billion as of mid-February 2025, providing roughly 9.6 months of import cover. He believes these factors, combined with stable interest rates and aligned fiscal policies, indicate a gradual return to macroeconomic stability.
Cardoso reaffirmed the CBN’s dedication to its tight monetary policy and its resolve to safeguard the recent gains in the FX market and the wider economy through consistent policies, rigorous oversight, and the implementation of ongoing reforms.
