CBN intends to build on its achievements in remittances, diaspora involvement, foreign exchange market reform, and otherThis is as 14 new foreign money transfer companies have received preliminary permission from the CBN recentlyIn addition, Electronic Foreign Exchange Matching System and other policies were introduced last year
Henzodaily.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
In 2025, the apex regulator plans to consolidate on the progress it has made in reforming the foreign exchange market, remittances, diaspora participation, and other areas, Olayemi Cardoso, governor of the Central Bank of Nigeria has said.
CBN introduced innovative policies and reforms across a range of areas. Photo Credit: Dangoote Group, Contributor
Source: Getty Images
Cardoso made this claim on Thursday in a statement uploaded on his X handle, which was reshared on the Central Bank of Nigeria’s official X handle, @cenbank.
The Electronic Foreign Exchange Matching System, which was introduced last year as part of the CBN’s several attempts to stabilize the naira, has increased market transparency.
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In order to encourage diaspora remittances through formal channels, the CBN has also given approval in principle to 14 new international money transfer companies.
On Thursday, Cardoso said,
“By engaging transparently with stakeholders – from local communities to international partners – we bolstered Nigeria’s credibility at the global level while addressing our nation’s unique challenges. These efforts included decisive action: clearing the verified FX commitments, which amounted to $7bn, discontinuing the Central Bank’s quasi-fiscal interventions, unifying the multiple exchange rate windows, etc.
“Furthermore, we introduced innovative policies and reforms across a range of areas: from the FX market and remittances to financial inclusion, diaspora engagement, compliance, private sector growth, and more.
“We also prioritised increasing investor confidence, enhancing the efficiency of our financial markets, and driving innovation across sectors. As a result of these policies and reforms, foreign capital imported into the country rose by over $6bn in 2024, and Nigeria’s external reserves have risen to over $40bn, reflecting the growing confidence in our economy.
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“This year, the CBN will build on this momentum, implementing sound monetary policies to safeguard our economic future, strengthening regulatory frameworks to inspire stability and confidence, and advancing initiatives that drive prosperity for all.
The regulator’s announcement in March 2024 of the banking sector’s recapitalization was motivated by the desire to help President Bola Tinubu’s $1 trillion economic ambition.
Meanwhile, in the third quarter of 2024, a notable decrease in invisible transactions caused a decline in demand for foreign exchange.
This was mentioned in the Central Bank of Nigeria’s most recent Quarterly Statistical Bulletin, which was posted online.
Examples of invisible transactions include medical costs, school fees, student maintenance allowances, and other eligible non-physical transactions.
Nigeria’s external reserves falls amid debt repayment
Henzodaily.ng reported that Nigeria’s external reserves grew in the past year but have declined sharply due to external debt servicing.
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Data from the Central Bank of Nigeria (CBN) shows that Nigeria’s external reserves fell by $320 million, a 0.8 decline in two weeks.
As of January 13, 2025, the reserves stood at about $40.56 billion, relative to $40.88 billion on January 2, 2025.
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Source: Henzodaily.ng