Between January and March this year, the Central Bank of Nigeria (CBN) reported a remarkable foreign exchange inflow of approximately N24 billion. This significant figure was disclosed by the Governor of the Central Bank of Nigeria, Olayemi Cardoso, during an interview with Bloomberg TV on Tuesday.
Cardoso highlighted that the forex inflow of $24 billion represents a substantial 50 percent increase compared to the same period last year. He confidently assured that, with the new measures being implemented and the continued increase in foreign exchange inflow, the era of naira volatility has come to an end.
He elaborated, saying, “We have essentially seen the worst of the volatility. You may recall that just months ago, when I assumed office in September 2023, the country faced a severe crisis. The Naira was heading in a dire direction, causing widespread fear, panic, and a loss of confidence and trust. Addressing these issues of confidence and trust was crucial.”
“We are relatively pleased with the progress we’ve made so far. In the past two to three weeks, following a period of volatility, we have witnessed significant stability in the market, with minimal movement in the currency. Several measures were taken to correct the distortions within the foreign exchange system, which had previously eroded investor confidence and prompted people to exchange their Naira for dollars.”
Cardoso further explained that these measures included issuing a series of circulars aimed at both banks and the operations of the foreign exchange system itself.
He emphasized that restoring confidence in the market was essential, which has been evidenced by the return of substantial inflows. “At the time, there was very little liquidity, but now we see much more stability and confidence,” he noted.
Overall, the Governor’s statements reflect a positive outlook for the naira, underpinned by strategic reforms and a bolstered foreign exchange reserve, promising a more stable and robust economic future for Nigeria.
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