ABUJA, Nigeria (VOICE OF NAIJA)- The Governor of the Central Bank of Nigeria, Mr. Olayemi Cardoso, says that Nigeria’s foreign exchange reserves have surpassed $40 billion, reaching their highest level in 33 months.
He made the announcement during a symposium in Abuja on Thursday, which also marked the launch of the compendium, Promoting Stability in an Era of Economic Reforms: The Journey So Far, commemorating the first anniversary of the Bank’s current management team.
In his keynote address, Cardoso highlighted the significant milestones achieved under his leadership, noting that the reforms implemented by the Bank are beginning to show positive outcomes.
In a press statement released on Thursday, Cardoso described the past year as one of transformation, despite the challenging economic conditions.
The governor highlighted that inflation, which had reached 24.1 percent by mid-2023, is now steadily declining, indicating the success of the Bank’s interventions.
The statement 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.”
Cardoso attributed these accomplishments to strong policy measures, including the recalibration of the Monetary Policy Rate, which was raised by 850 basis points to 27.25 percent, and the increase in the Cash Reserve Ratio for commercial banks to 50 percent.
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He explained that these measures were designed to combat inflation and stabilize the economy.
The governor also pointed to progress in the foreign exchange market, noting the removal of multiple exchange rate windows, which had previously created arbitrage opportunities and hindered foreign investment.
He emphasized that this reform had resolved a backlog of FX settlements and reduced revenue losses, which were estimated at N6.2 trillion in 2022.
Cardoso further highlighted the Central Bank’s efforts to boost foreign remittances, reaffirming its goal of achieving $1 billion in monthly remittances an initiative he described as crucial for strengthening Nigeria’s foreign reserves and supporting overall economic stability.
Cardoso also detailed measures taken to address Nigeria’s declining foreign direct and portfolio investments, longstanding challenges for over a decade.
To address these issues, the Central Bank of Nigeria introduced new operational guidelines for Bureau de Change operators, strengthening regulation and reducing disruptions in the foreign exchange market.
He highlighted the CBN’s commitment to digital transformation through its Digital-First Initiative, which has automated essential processes, lowered operational costs, and introduced data-driven tools to improve policy decisions.
Additionally, the Bank launched an Integrated Data Collection and Sharing Portal and established an Investor Relations Unit to foster a transparent, investor-friendly environment.
Cardoso underscored the critical role of collaboration between fiscal and monetary authorities, calling it essential for cohesive and effective policymaking.
The statement also highlighted that Lagos State Governor Babajide Sanwo-Olu praised the CBN’s leadership for its dedication to transparency and constructive self-evaluation.
Sanwo-Olu further emphasized the importance of unity in tackling Nigeria’s economic challenges.