The naira has achieved global recognition as the best-performing currency due to the successful implementation of foreign exchange reforms by the Central Bank of Nigeria, as proudly announced by Governor Yemi Cardoso.
Over the past few months, Nigeria’s currency has experienced a dramatic decline in value compared to major currencies.
Nigeria’s foreign exchange reserves have dipped by about $2.16 billion, standing at $32.29 billion as of April 15. However, Cardoso clarified that this decline is not related to defending the naira but rather due to debt payments and maintaining credibility.
“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.
Read also: Why Naira Appreciation Against Dollar Will Continue -Shettima
“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 will soon commence a fall,” Cardoso said.
“Security concerns in food-producing regions and infrastructure challenges also demand attention.
“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.
He emphasized that while there is still much to be done to resolve their problems, they have a well-defined and phased plan to tackle the challenges ahead, working in tandem with their vital collaborators, including investors, lenders, enterprises, and, significantly, their fiscal counterparts.