The Central Bank of Nigeria has said that the naira will become stable as investors confidence in the economy growsCBN governor, Olayemi Cardoso, stressed that the policies introduced by the bank have stabilityThe local currency has risen in value in recent times, crashing below the N1,500 threshold as of Thursday, January 30, 2025
Henzodaily.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Central Bank of Nigeria (CBN) has disclosed that the naira will stabilise as investors’ confidence in the economy rises.
CBN governor, Olayemi Cardoso, disclosed this in Abuja on Thursday, January 30, 2023, at the Monetary Policy Forum (MPF) with stakeholders.
The Central Bank of Nigeria governor, Olayemi Cardoso, credits the naira’s gain on the bank’s policies.
Credit: CBN
Source: Twitter
CBN attributes the naira’s rising value to policies
The CBN boss said that the monetary regulator believes that the policies it introduced set Nigeria on the sustainable path to economic stability.
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He said the local currency has seen some volatility recently, but that the naira is stabilising.
He disclosed that the international community and investors are worried, but that the naira is reflecting its actual rate, making it more competitive.
According to Cardoso, Nigeria has seen a rising interest from international investors, highlighting the need for partnership among policy drivers, the private sector and the civil society to drive important changes.
The apex bank governor said that the forum provides an avenue for engagement, allowing all stakeholders to proffer solutions and refine strategies.
External reserves have risen organically
The Guardian reported that Nigeria has seen a relatively stable forex market, which has narrowed exchange rate disparity, and rising external reserves to over $40 billion as of December last year.
He stated that the external reserves growth was organic, saying it is growing as the heath level improves much stronger and boosted.
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CBN’s Deputy Governor of Economic Policy, Mohammad Abdullahi, said the tough regime adopted by the apex bank aims at fighting inflationary pressure.
The naira surges in FX markets
A previous report by Henzodaily.ng revealed that the naira has been surging against the US dollar since January.
The naira has been surging since this week due to a series of measures introduced by the CBN, including the newly launched FX Codes, to boost liquidity and transparency.
CBN had warned banks and currency traders of severe consequences if they violated the FX Code and asked them to embed it in their daily operations.
Analysts believe the FX Code launch and other CBN market-friendly policies are responsible for the naira’s bullish run in the forex markets.
Data from the Customs trade portal shows that the CBN reduced the exchange rate for cargo clearance three times in one week, from N1,522 per dollar to N1,507 and N1,500.
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CBN adjusts Customs exchange rates to clear goods as dollar crashes against naira
The naira’s rally has boosted investors’ confidence and injected fresh hopes in Nigeria’s forex markets.
On Thursday, January 30, 2025, the naira broke into the N1,400 ceiling after rallying the previous day.
The naira appreciates to a new high
The Nigerian currency appreciated 1.64% to close at N1,485.95 per dollar, the highest in January.
Currency dealers quoted the dollar at a high of N1,516 and a low of N1,470 per dollar.
Meanwhile, the naira traded flat in the parallel segment of the foreign exchange market at N1,640, the same as the previous day’s rate.
Naira on a gain streak, hits new high against USD
Henzodaily.ng earlier reported that the naira has been recovering since the Central Bank of Nigeria (CBN) implemented several reforms.
The apex bank launched a new FX Code to boost liquidity and transparency, warning banks and traders of dire consequences if they violate it.
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Analysts believe the new Code has paid off following the gains of the naira in the official and parallel market windows.
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Source: Henzodaily.ng