During the ongoing International Monetary Fund/World Bank Spring Meetings in Washington, D.C., United States, Olayemi Cardoso, the Governor of the Central Bank of Nigeria, emphasized that the sustained liquidity in the foreign exchange market would be a key factor in maintaining the appreciation of the naira.
Cardoso highlighted the ample liquidity present in Nigeria’s FX market, ranging between $600 million to $1 billion and reaffirmed the Central Bank’s commitment to promoting a voluntary price discovery system between buyers and sellers in the FX market.
In his statement, he envisioned a future where the Central Bank’s intervention in the market would be minimal, except in extraordinary circumstances, emphasizing the importance of a well-functioning currency market with adequate liquidity, reducing the necessity for interventions.
Regarding the recent inflow of $600 million into the country’s foreign exchange reserves, Cardoso mentioned the ongoing efforts to encourage market activities, including facilitating access to funds for essential expenses like school fees and healthcare.
It is notable that the naira experienced a significant N75 increment against the dollar in Wednesday’s foreign exchange market session, underscoring the positive market dynamics.