The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, has revealed that Nigeria’s foreign exchange reserves have surpassed $40 billion, marking the highest level in over two and a half years.
Cardoso made the announcement during a symposium held in Abuja on Thursday, coinciding with the release of the compendium titled “Promoting Stability in an Era of Economic Reforms: The Journey So Far”. The event also celebrated the first anniversary of the current CBN management team.
In his keynote address, the Governor reflected on the key milestones achieved under his leadership and the positive impact of the economic reforms initiated by the Bank. Despite the challenging economic landscape, Cardoso noted that the past year had been transformative, with notable improvements in several key areas.
A statement issued by the CBN on Thursday highlighted that inflation, which had reached 24.1 percent by mid-2023, is now trending downward, signalling that the Bank’s interventions are beginning to take effect.
According to the statement, Cardoso attributed the recent positive developments to the successful implementation of several monetary policy measures. “These reforms have already shown tangible results, including the stabilisation of foreign exchange reserves, which have now exceeded $40 billion — the highest in 33 months. While inflation remains elevated, it is on a clear downward trajectory,” he said.
The Governor explained that the policy actions, such as the adjustment of the Monetary Policy Rate (MPR) by 850 basis points to 27.25 percent, along with an increase in the Cash Reserve Ratio (CRR) for commercial banks to 50 percent, were designed to rein in inflation and restore stability to the economy.
Cardoso also emphasised improvements in Nigeria’s foreign exchange market, particularly the elimination of multiple exchange rates. This reform had previously created opportunities for currency arbitrage and discouraged foreign investment. The CBN’s efforts to unify the exchange rate have helped address a significant backlog in foreign exchange settlements, which had caused revenue losses estimated at N6.2 trillion in 2022.
The CBN has also been focused on increasing remittances to the country. Cardoso reiterated the Bank’s target of achieving $1 billion in monthly remittances, which he views as vital for bolstering Nigeria’s foreign reserves and promoting economic stability.
In addition to foreign reserves and remittances, Cardoso spoke about the ongoing efforts to attract foreign direct investment (FDI) and portfolio investment, which have been on the decline for over a decade. The CBN has introduced new operational guidelines for Bureau de Change operators to enhance regulation, improve transparency, and reduce market disruptions.
Cardoso further highlighted the Bank’s commitment to digital transformation through its Digital-First Initiative, which aims to automate processes, reduce operational costs, and leverage data-driven tools for more effective policymaking. The Bank has also rolled out an Integrated Data Collection and Sharing Portal and established an Investor Relations Unit to create a more transparent and investment-friendly environment.
During the symposium, Lagos State Governor Babajide Sanwo-Olu praised the leadership of the CBN for its focus on transparency and self-assessment. He also stressed the importance of cooperation between fiscal and monetary authorities in addressing Nigeria’s economic challenges, emphasising the need for unity to achieve sustainable growth