CBN Governor Announces $800 Million Forex Transactions, Boosts Economic Recovery

The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has revealed that the country recorded an impressive $800 million in foreign exchange transactions on Monday. This is the highest volume of forex trading in the country in recent years.

Cardoso made this disclosure on Tuesday while speaking at the sectoral debate on the economy organized by the House of Representatives. He expressed his optimism that the Nigerian economy will rebound strongly from the effects of the COVID-19 pandemic and the devaluation of the Naira.

He attributed the positive development to the recent policy interventions by the CBN, which he said are aimed at stabilizing the exchange rate, increasing liquidity, and enhancing transparency in the forex market.

He said: “I am confident that positive outcomes are emerging and will become more apparent shortly. The dedicated and relentless efforts being made are certain to bring about significant and positive changes for our economy. On that note, I am happy to inform you that as of yesterday, the volume of transactions on our market was over $800 million. This is the first time it has achieved this level in many years.”

The CBN Governor’s announcement comes amid the volatility of the Naira against the US dollar, which has been fluctuating between N1,419.86 and N1,500 in the past week. According to data from FMDQ, the Naira closed at N1,433.89 per US dollar on Tuesday.

In a bid to arrest the slide of the Naira and restore confidence in the forex market, the CBN has introduced four policy reforms in the last seven days. These include:

– A revision to the FMDQ FX Market Rate Pricing Methodology, which aims to ensure that the exchange rate reflects the true market conditions and reduce arbitrage opportunities.
– A guideline to curb foreign currency hoarding and speculation, which mandates banks to sell all their forex inflows to customers within 24 hours and report any defaulting customer to the CBN.
– A fresh guideline for International Money Transfer Operators (IMTOs) in Nigeria, which removes the cap on the exchange rate quoted by IMTOs and allows them to source forex from other authorized dealers.
– A circular to all authorized dealers and the general public, which clarifies the modalities for the operation of the Naira 4 Dollar Scheme, which offers an incentive of N5 for every $1 remitted through IMTOs.

The CBN Governor assured the lawmakers and the public that the apex bank will continue to monitor the forex market and implement appropriate measures to ensure stability and growth of the economy.