Olayemi Cardoso, governor of the Central Bank of Nigeria
(CBN), says there’s now more liquidity in the country’s foreign exchange (FX)
market.
Cardoso spoke on Friday during a joint press briefing with
Wale Edun, the minister of finance, in Washington, DC, United States.
The media engagement provided updates on the activities of
the Nigerian delegation — led by Edun — at the 2026 spring meetings of the
International Monetary Fund IMF and World Bank.
Addressing journalists, Cardoso said Nigeria’s FX market has
shifted from being largely controlled by the central bank to a more
market-driven system.
“The foreign exchange system that used to operate in those
days is very different from what it is now,” the CBN governor said.
“Then you had the central bank that was primarily the only
one determining that market. That is different now. It is market-driven. There
is more liquidity in the market. There is confidence. Investors come in and go
out as they like.”
He added that the improved liquidity has reduced the need
for frequent interventions by the apex bank.
In November 2025, Cardoso said the country’s FX market is
now recording an average daily turnover of $500 million — often without the CBN
having to intervene.
He said Nigeria now operates a market driven by “willing
buyers and willing sellers,” with transparent processes that allow participants
to see who is buying and who is selling at any point in time.
Speaking on the decline in reserves, Cardoso said
fluctuations in Nigeria’s foreign reserves are normal and should not be a cause
for concern.
According to the CBN governor, the country’s reserves remain
well above the minimum threshold recommended by the IMF.
“We already have way beyond what the IMF even recommends for
you to have as your minimum reserve level. We are in a very comfortable
position,” he said.
“It’s normal. Honestly, there is nothing to worry about.”
The external reserves have dropped by $1.37 billion or 2.75
percent within six weeks, from a 17-year high of $50.02 billion recorded on
March 11 to $48.64 billion as of April 16, according to data obtained from the
CBN.
On April 10, Fitch Ratings projected that Nigeria’s FX
reserves will drop to $47 billion by year.
Furthermore, Cardoso said CBN is targeting diaspora
remittance inflows of $1 billion monthly by the end of 2026.
The CBN governor said current inflows stand at about $600
million per month.
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