Naira Best Performing Currency Globally, Says CBN

Posted by African Examiner Business News, Latest Headlines Saturday, April 20th, 2024

(AFRICAN EXAMINER) – The Central Bank of Nigeria (CBN) governor Yemi Cardoso says the apex bank’s FX reforms have made the naira the best-performing currency globally.

Nigeria’s currency lost massively against major currencies in the past few months.

But Cardoso, who spoke on Saturday in a briefing on the sidelines of the just-ended World Bank/IMF Spring Meetings in Washington DC, United States, said the CBN’s foreign exchange reforms are paying off.

“April saw the naira emerge as the best-performing currency globally, supported by bullish sentiment from leading international investment institutions,” he said.

“Our FX market is experiencing robust activities with turnover reaching levels not seen in over seven years.

“This liquidity boost instills confidence among investors, businesses, and other partners, ensuring fluidity in their interactions with Nigeria’s FX markets.”

But the CBN chief is not carried away by this and is well aware of the challenges facing the nation’s economy including the rising inflation rate.

“However, we remain vigilant, recognizing the challenges that persist, such as elevated inflation driven by rising food prices, transportation costs, and energy expenses. We note that inflation though rising is doing so at a decelerated rate and we are confident it will soon commence a fall,” Cardoso said.

“The CBN has implemented a number of policy reforms to address some of these various pressures and, while I am confident enough today to talk about some of our early success, I am at the same time extremely mindful of our ongoing challenges.

“We still have work to do in solving all our problems, however, we do have a determined pathway and a sequenced approach to tackling all challenges ahead, working hand in hand with our key stakeholders including investors, banks, businesses, and, notably, our counterparts on the fiscal side.”