The Governor of the Central Bank of Nigeria, Olayemi Cardoso, has reaffirmed the apex bank’s commitment to stabilizing the country’s foreign exchange market by identifying and removing individuals whose actions disrupt the naira’s stability.

This statement follows reports indicating a slight depreciation of the naira in the official foreign exchange market on Tuesday, closing at N1,532.39/$ compared to N1,531.19/$ on Monday.

The 0.08 percent decline signals relative stability despite minor market fluctuations, reflecting ongoing adjustments to recent policy reforms and shifting demand-supply dynamics.

Meanwhile, in the Bureau De Change segment, the exchange rate remained steady at N1,570/$ on both days, maintaining the gap between the official and parallel market rates.

The steady BDC rate suggests relatively stable demand for physical dollars in the informal market, even as the CBN intensifies its monitoring and intervention efforts across various FX windows.

The slight depreciation in the official market reflects broader attempts by the Central Bank of Nigeria to align the FX market with fundamental economic conditions.

Meanwhile, CBN Governor Olayemi Cardoso reaffirmed the bank’s commitment to safeguarding the market in a statement from the February 2025 Monetary Policy Committee meeting, published Tuesday on the apex bank’s website.

Cardoso emphasized the CBN’s role in ensuring price stability and investor confidence, stating, “Given the exchange rate’s critical role in controlling inflation, sustaining economic recovery, and maintaining financial stability, we must enhance surveillance of the foreign exchange market and eliminate bad actors and disruptive practices. The Central Bank remains steadfast in this mission.”

His remarks come in the wake of a series of CBN reforms aimed at stabilizing the naira, restoring investor trust, and promoting a market-driven FX system.

These measures include the introduction of the Electronic Foreign Exchange Matching System (B-Match) and the Nigeria Foreign Exchange Code—initiatives designed to enhance transparency, encourage ethical practices, and boost operational efficiency.

Cardoso stated that the ongoing reforms are already showing positive results, with the naira appreciating and liquidity in the FX market improving.

He attributed these gains to renewed foreign investor confidence, supported by sustained remittance inflows, export earnings, and foreign direct investment.

The CBN governor further noted that investor sentiment continues to strengthen, with demand shifting towards the official FX window as speculative pressures ease. At the MPC meeting, where the Monetary Policy Rate was maintained at 27.50 per cent, Cardoso and other members evaluated the impact of current policies on inflation and financial stability. The committee observed that FX reforms and tighter monetary conditions are contributing to a gradual reduction in inflationary pressures, particularly following the rebasing of the Consumer Price Index by the National Bureau of Statistics.

Despite these improvements, Cardoso stressed that the FX market remains a critical pressure point in Nigeria’s macroeconomic outlook.

He underscored the need for continuous vigilance and strict regulatory oversight to prevent malpractice in the market.

Additionally, he emphasized that ensuring FX market stability is not only a monetary policy goal but a crucial factor for economic recovery and resilience—especially as the economy adjusts to fuel subsidy removal and fiscal reforms.

The February MPC communique also highlighted broader macroeconomic progress, including a positive current account balance, increased oil production, and strong external reserves, all of which bolster the CBN’s ability to manage liquidity and support the naira.

Cardoso acknowledged that while challenges remain, the alignment of fiscal and monetary policies, along with institutional reforms and targeted oversight, is essential for building a more stable and credible financial system.