Central Bank of Nigeria Governor, Olayemi Cardoso, has revealed that the country’s foreign-exchange market now records a daily turnover of approximately $500 million without direct participation from the central bank. The disclosure highlights the growing maturity of Nigeria’s FX market and the increasing confidence of private sector actors in a market-driven system.
Speaking at a recent financial forum, Cardoso explained that the market is now largely driven by willing buyers and willing sellers, allowing for more transparency and efficiency in the allocation of foreign currency. He said the development is part of the ongoing reforms aimed at liberalising the FX market and reducing dependence on central bank interventions.
According to Cardoso, the surge in market activity has helped narrow the gap between official and parallel market exchange rates. The electronic foreign-exchange matching system introduced by the CBN has been a key factor in improving liquidity and fostering a more reliable pricing mechanism for foreign currency transactions.
Economic analysts have welcomed the report, noting that a more active and self-sustaining FX market can reduce pressure on the naira, attract foreign investment, and support international trade. They cautioned, however, that consistent monitoring and supportive policies remain crucial to prevent volatility and ensure stability in the foreign-exchange market.
Cardoso emphasised that while the CBN continues to provide regulatory oversight, the market’s strength lies in private sector participation. He urged businesses and investors to leverage the opportunities presented by the reforms, while reiterating the CBN’s commitment to maintaining a stable and transparent foreign-exchange environment to support Nigeria’s economic growth.
