Cardoso Breaks Silence Here’s What Really Determines Nigeria’s Foreign Exchange

Cardoso Breaks Silence Here’s What Really Determines Nigeria’s Foreign ExchangeCBN Governor Olayemi Cardoso has clarified the real determinant of Nigeria’s foreign exchange rate, emphasizing that it is driven by economic fundamentals, not by the Central Bank. He made this statement during his address at the Nigeria Development Update launch in Abuja on Thursday, October 17.

Cardoso highlighted his commitment to traditional central banking principles and expressed optimism about working closely with fiscal authorities to achieve more stability in the exchange rate. He noted significant improvements in foreign exchange inflows, which have risen from $200 million to $600 million, attributing this to renewed investor confidence.

Additionally, Cardoso acknowledged the positive shift in investor interest, with many who had been previously hesitant now showing willingness to invest in Nigeria.

In July, Nigeria’s foreign exchange reserves peaked at $34.7 billion, an increase of $110 million from the previous day, which analysts believe helps safeguard the economy against external shocks and enhances Nigeria’s financial stability.