The Governor Central Bank of Nigeria (CBN), Yemi Cardoso has said that the boldness and unconventional reforms adopted by the apex bank have boosted foreign exchange supply and increase remittance inflows into the country said that reduction in the market volatility was as a result foreign exchange reform undertaken by the CBN.
He said that the bank has reduced arbitrage and speculative activities, while eliminating the front-loading of foreign exchange demand.
In his explanation, he said “Since assumption of office a year ago, we’ve been focused on how to address inflationary concerns, restore investors’ confidence in financial markets and stabilizing the exchange rate. Enhancing the financial system, fostering financial inclusion and enhancing transparency in our monetary policy decisions and communication.
“We embarked upon bold and necessary reforms to return to the path of monetary policy orthodoxy as well as removed observed distortion in the foreign exchange market. Our efforts have yielded significant progress as volatility in the foreign exchange market has abated immeasurably and remittances have also increased significantly.
“We’ve achieved increased transparency and improved overall supply in the foreign exchange market, leading to reduced arbitrage, speculative activities and eliminated front loading of foreign exchange demand.”
On the recapitalisation policy, the CBN governor said the initiative is designed to support a N1 trillion economy by 2030.
He said “the CBN recapitalization policy has prompted deposit money banks to strengthen their financial position, a process expected to result in a more robust and resilient banking sector by March 2026. The exercise is meant to support the realization of the N1 trillion economy by 2030. ”
He pointed out that by leveraging smarter technology and remote banking solutions, the policy aim to reduce transaction cost and expand financial access, ensuring that every Nigerian, regardless of location or demographics, can meaningfully participate in our involving financial system.
