CBN Governor, Olayemi Cardoso

The Central Bank of Nigeria (CBN) has dismissed suggestions that it is heavily intervening in the foreign exchange (FX) market to support the naira, insisting that its participation has remained minimal relative to overall market activity. Governor, Olayemi Cardoso, while responding to questions fielded by newsmen after the Monetary Policy Committee (MPC) meeting in Abuja on Wednesday, clarified that the apex bank’s interventions in the FX market accounted for just about 1.2 to 1.3 per cent of total market turnover, arguing that recent stability in the naira has largely been driven by reforms that have deepened liquidity and improved transparency. According to him, the FX market has evolved significantly over the past two years, moving toward a more market-driven structure characterised by “willing buyer, willing seller” dynamics, improved information symmetry, and reduced distortions. He noted that average daily FX turnover has risen sharply compared to previous levels, with market activity now ranging from about $550 million daily and occasionally spiking as high as $1 billion. This, he said, demonstrates a deeper and more liquid market where price discovery is increasingly determined by participants rather than administrative actions. “The market now largely operates on its own.

Sun