Central Bank Governor, Olayemi Cardoso Thursday, announced that Nigeria’s foreign exchange reserves have risen to over $40 billion, marking their highest level in almost three years.
He disclosed that during a symposium in Abuja that celebrated his team’s first year in office.
During the event, which featured the launch of a report titled “Promoting Stability in an Era of Economic Reforms: The Journey So Far,” Cardoso highlighted significant economic improvements under his leadership.
An official statement released Thursday read, “According to Governor Cardoso, the reforms had started to yield positive results, including marked improvements in the FX market and a stabilisation of foreign reserves, which have now surpassed the $ 40 billion mark, the highest in 33 months. “While noting that inflation remained elevated, he said it was on a downward trend, signalling that the reforms were taking hold in restoring market equilibrium and fostering growth.”
The Central Bank has implemented aggressive measures to combat inflation and stabilize the economy. These include raising the Monetary Policy Rate by 850 basis points to 27.25% and increasing the Cash Reserve Ratio for commercial banks to 50%.Read Also: Oil-rich states face salary crunch without FAAC
A key reform involved streamlining Nigeria’s foreign exchange system by eliminating multiple exchange rates. This change addressed delayed foreign exchange settlements and prevented revenue losses that had reached 6.2 trillion naira in 2022. The previous system had discouraged foreign investment
Looking ahead, the Central Bank aims to boost monthly foreign remittances to $1 billion, a target Cardoso sees as crucial for strengthening Nigeria’s foreign reserves and economic stability. To support these objectives, new operational guidelines have been established for Bureau de Change operators to better regulate the foreign exchange market.
Author: Maureen Ikpeama