Reforms yielding positive results as investors injected over $1bn in FX market, says Cardoso.

The Governor,  Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso  has said reforms initiated by the apex bank are yielding positive results in the foreign exchange market, disclosing that the market received a boost of over $1 billion in liquidity within a “few days”.

Cardoso spoke on Friday during a presentation to lawmakers at the senate in Abuja.

“We have already begun to see shifts in a positive direction,” Cardoso said.

“Indeed, we have already begun to see positive results with significant interest from foreign portfolio investors which was a concern that has already begun to supply the much-needed foreign exchange to the economy.

“For example, the upward trend of the last few days. We have had over $1 billion that have come into the market. And this, quite frankly, is the answer to the question.”

Cardoso further said the apex bank does not have the magic wand to stabilise the foreign exchange, saying “Nigerians have to reduce frequent demand for dollars for business and personal needs”.

He assured the senate that the reforms have generated significant interest from foreign portfolio investors.

The CBN had introduced policies targeted at boosting liquidity in the FX market.

On January 31, 2024, the financial regulator released new measures for financial institutions to manage FX risks, directing banks to sell dollars to prevent losses.

CBN also removed the allowable limit of exchange rate quoted by the international money transfer operators (IMTOs), stating that FX rates used should be from the official FX market. The apex bank also pledged to ensure that the FX market is stabilised.

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