FX rate not determined by CBN – Cardoso

The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, has clarified that the CBN does not dictate the foreign exchange rate, explaining that it is influenced by underlying economic fundamentals.

Speaking during a panel discussion at the launch of the Nigeria Development Update in Abuja, Cardoso reaffirmed his commitment to upholding traditional central banking principles in managing the nation’s monetary policy.

He stressed that the CBN’s role is to support the economy while ensuring stability in the foreign exchange market, as determined by broader economic forces.

In his words: “The CBN does not determine the exchange rate; it is determined by the fundamentals. The CBN will ensure that we adhere to that.”

Cardoso expressed confidence that strengthening collaboration with fiscal authorities would lead to more stability in the exchange rate.

He also highlighted efforts to increase foreign exchange inflows into the Nigerian economy, noting: “When we started, FX inflows were about $200 million, but through sheer determination, we now record $600 million.”

He further remarked on the positive shift in investor confidence, stating, “Before, many potential investors were on the sidelines. Now, it’s amazing to see how many have stepped forward to invest in Nigeria.”