CBN Speaks On Next Plan To Fight Speculators As Naira Depreciates

• The CBN governor, Olayemi Cardoso, has claimed that the top bank remained dedicated to maintaining order in the foreign exchange market
• He noted that dishonest players whose actions threaten the stability of the naira were being identified and removed by the regulator
• This followed a slight 0.08% decline in the naira, indicating that the market remained relatively stable despite minor fluctuations

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

Olayemi Cardoso, the governor of the Central Bank of Nigeria, has assured that the apex bank remained committed to upholding order in the nation's foreign exchange market by locating and removing dishonest players whose actions jeopardise the naira's stability.

The naira fell slightly on Tuesday's official foreign currency market, closing at N1,532.39/$ as opposed to N1,531.19/$ on Monday, March 24, 2025, according to the data.

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On the Bureau De Change segment, the exchange rate stayed steady at N1,570/$ for both days, reflecting a steady spread between the official and parallel market rates. This represented a marginal decline of 0.08%, indicating relative stability despite minor market fluctuations.

The Punch reported that the movement suggested continued volatility within a narrow band as the market adjusted to recent reforms and changing demand-supply dynamics.

Even as the CBN stepped up its surveillance and intervention tactics across FX windows, the unaltered BDC rate indicated a comparatively steady demand for actual dollars in the black market.

The Central Bank of Nigeria is making larger attempts to bring the FX market into line with market realities, which is why the official window saw a modest devaluation.

In his remarks at the February 2025 Monetary Policy Committee meeting, which were posted on the apex bank's website on Tuesday, Cardoso clarified the bank's stance and emphasized the bank's responsibility to protect the market from actions that jeopardize investor confidence and price stability.

“Given the importance of the exchange rate in the fight against inflation and the sustenance of economic recovery and broader financial stability,” he said. “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.”

CBN implements different policies

The announcement came after the CBN implemented a number of changes aimed at stabilising the naira, regaining investor trust, and bringing the FX market closer to market norms.

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These initiatives included the introduction of the Nigerian Foreign Exchange Code and the Electronic Foreign Exchange Matching System (B-Match), programmes designed to promote ethical behaviour, enhance operational efficiency, and improve transparency.

Cardoso clarified that these reforms were already yielding results, citing increased liquidity in the foreign exchange market and a relative appreciation of the naira.

He credited this to a resurgence of confidence among international investors, which was supported by consistent remittance inflows, export earnings, and foreign direct investment.

At the MPC meeting, which kept the Monetary Policy Rate at 27.50%, Cardoso joined other members in evaluating the effects of current policies on inflation and financial stability.

The apex bank governor also noted that investor sentiment has continued to improve, with demand moving more and more to the official FX window as a result of less speculative pressures.

Particularly after the National Bureau of Statistics rebased the Consumer Price Index, the committee observed that the FX reforms and tighter monetary conditions are helping to gradually reduce inflationary pressures.

What's next for CBN?

The CBN Governor underlined that the foreign exchange market is still a major source of pressure on Nigeria's macroeconomic outlook in spite of these developments.

As a result, he emphasised the necessity of constant watchfulness and stringent regulatory supervision to prevent malpractice in the market.

He also recognised that preserving stability in the foreign exchange market was not only a financial objective but also a prerequisite for greater economic recovery and resilience, particularly in an environment still adjusting to the removal of fuel subsidies and fiscal space reforms.

CBN reduces customs rate to clear goods

Legit.ng earlier reported that the CBN reduced the Nigeria Customs Service (NCS) foreign exchange (FX) rate for import duties.

According to data from Nigeria's trade portal observed on Tuesday, March 25, 2025, the dollar exchange rate for import duty has dropped to N1530.68.

This represented a 0.37% lower rate when compared to the N1,536.39/$ displayed on Friday, March 22.

Proofreading by James Ojo, copy editor at Legit.ng.