Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), has dismissed concerns over a recent decline in the country’s external reserves, stating that improved liquidity in the foreign exchange (FX) market reflects ongoing reforms.
Speaking on Friday at a press briefing during the International Monetary Fund (IMF) and World Bank Spring Meetings in Washington, DC, Cardoso said Nigeria’s FX market is becoming more stable and transparent despite the reported $1.37bn drop in reserves over the past six weeks.
He noted that the country has made a significant transition from a heavily central bank-controlled FX regime to a more market-driven system, which he described as a critical step toward long-term economic resilience.
According to Cardoso, increased participation and improved liquidity in the FX market signal growing investor confidence, even as short-term fluctuations in reserves persist.
The CBN governor emphasised that the current trajectory aligns with broader monetary policy goals aimed at enhancing efficiency, attracting foreign investment, and ensuring sustainable economic growth.
Nigeria has in recent months undertaken a series of reforms to unify its exchange rates and reduce distortions in the FX market—moves that authorities say are beginning to yield positive results.
