Naira Appreciates Against US Dollar in All Forex Markets

Olayemi Cardoso the governor of the Central Bank of Nigeria has revealed that the sustained fiscal and monetary reforms has helped stabilise the naira and restore investor confidence. Speaking after the Monetary Policy Committee (MPC) meeting in Abuja on Tuesday, May 20, Cardoso noted that the Nigerian economy and the naira is now position on a more competitive footing.
He also said that the recent improvements in Nigeria’s exchange rate dynamics, inflation outlook, and external reserves were direct results of decisive policy shifts introduced since June 2023.

He added: “It is a very positive signal, especially when you consider the uncertainty around global trade, interest rates, and capital flows.”

Cardoso attributed the gains to reforms including exchange rate liberalisation, tighter monetary policy, the end of deficit monetisation, and the removal of petrol subsidies, changes that helped Nigeria weather global market volatility better than many peer economies. He said. “We are in a period of heightened global tension, and currencies around the world have been under attack. “But Nigeria came out well engaged. Our depreciation was modest, and our reforms allowed us to build buffers that absorbed the shocks.”

Cardoso credited the CBN’s forward-looking strategy for averting worse outcomes, explaining that the exchange rate volatility has declined from over 4% a year ago to below 0.5%.
The governor further pointed to a significant jump in net external reserves from just over $3 billion to about $23 billion as evidence of improved market confidence, BusinessDay reports. He also pointed to a surplus in the current account, improved trade balance The CBN governor added: “These figures didn’t just happen. They reflect transparency in process, policy consistency, and reforms that encouraged players who had been sitting on the sidelines to return to the market.”

Source: legit.ng

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