Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has said the bank will remain relentless in its pursuit of bad actors whose activities undermine the stability of the naira.
Cardoso made the bank’s position known in his statement at the February 2025 Monetary Policy Committee meeting, which was posted on the CBN’s website on Tuesday.
The CBN governor stressed the bank’s role in safeguarding the market from practices that threaten price stability and investor confidence.
“Given the importance of the exchange rate in the fight against inflation and the sustenance of economic recovery and broader financial stability.
“We must maintain a heightened level of surveillance in our foreign exchange market and root out any bad actors and practices that threaten the smooth functioning of the market and stability of the exchange rate. The Central Bank has an unwavering commitment to this objective,” Cardoso said.
The CBN has, of recent, introduced some reforms aimed at stabilising the naira, restoring investor confidence, and aligning the FX market more closely with market principles.
Some of the reforms include the launch of the Electronic Foreign Exchange Matching System (B-Match) and the Nigeria Foreign Exchange Code.
Cardoso attributed this to renewed foreign investor confidence, bolstered by sustained remittance inflows, export proceeds, and foreign direct investment.
According to him, investor sentiment has continued to improve, with demand shifting increasingly to the official FX window due to reduced speculative pressures.
At the MPC meeting, which retained the Monetary Policy Rate at 27.50 per cent, the committee noted that the FX reforms and tighter monetary conditions are contributing to a gradual easing in inflationary pressures, especially following the rebasing of the Consumer Price Index by the National Bureau of Statistics.
Despite these improvements, the CBN Governor maintained that the FX market remains a key pressure point in Nigeria’s macroeconomic outlook.
As such, he emphasised the need for ongoing vigilance and strict regulatory oversight to keep the market free of malpractice.
Cardoso also acknowledged that maintaining stability in the FX market is not just a monetary goal, but a necessary condition for broader economic recovery and resilience, especially in an environment still adjusting to the removal of fuel subsidies and reforms in the fiscal space.
The February MPC communique also highlighted broader macroeconomic progress, including a positive current account balance, improving oil production levels, and robust external reserves — all of which contribute to the Bank’s capacity to manage liquidity and defend the naira.
Cardoso noted that while challenges persist, the alignment of fiscal and monetary policy, combined with institutional reforms and targeted surveillance, is key to building a more credible and resilient financial system.
The naira depreciated slightly at the official foreign exchange market on Tuesday, closing at N1,532.39/$ compared to N1,531.19/$ on Monday.
