Central Bank of Nigeria (CBN) Governor, Mr. Olayemi Cardoso, has clarified that the CBN does not set the foreign exchange (FX) rate, emphasizing that the rate is determined by underlying economic factors.
Speaking at the Nigeria Development Update event in Abuja, Cardoso reiterated his commitment to traditional principles of central banking.
“The CBN does not determine the exchange rate; it is determined by the fundamentals. The CBN will ensure that we adhere to that,” he stated.
Cardoso also expressed optimism that closer cooperation with fiscal authorities would contribute to exchange rate stability.
He highlighted ongoing efforts to boost FX inflows into Nigeria’s economy, noting a substantial increase from $200 million to $600 million since he assumed office.
Furthermore, Cardoso pointed to rising investor confidence in the Nigerian market, saying, “Previously, numerous potential investors were hesitant. Now, it’s remarkable to see how many are ready to invest in Nigeria.”
CBN Introduces New FX Code, Mandates Compliance from Banks, BDCs, and Others
The Central Bank of Nigeria (CBN) has introduced a new Foreign Exchange (FX) Code aimed at regulating the foreign exchange market and stabilizing the naira.
The guidelines, designed for eligible participants in Nigeria’s FX market, were announced on October 3, 2024, via the CBN’s official website.
According to the CBN, this FX Code aligns the country’s financial system with global standards and aims to promote transparency, fair practices, and resilience in Nigeria’s foreign exchange market.
The new FX Code is structured around six core principles: ethics, governance, execution, risk management and compliance, information sharing, and confirmation and settlement procedures.
These principles are intended to guide the behavior and actions of market participants, ensuring that all transactions in the FX market adhere to international best practices.
