The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has announced that the Naira has become more competitive in the foreign exchange market, signaling stability for the Nigerian economy. This statement was made after the 300th Monetary Policy Committee (MPC) meeting in Abuja, where key interest rates were held steady.
Key Highlights of Cardoso’s Statement:
– Naira Stability: The Naira has reached a seven-month high stability, attributed to the CBN’s reforms, particularly in the foreign exchange market.
– Competitiveness: The CBN Governor believes the Naira’s increased competitiveness will encourage more exports, boosting the economy.
– Inflation Outlook: Cardoso expressed optimism about moderating inflation, citing the National Bureau of Statistics’ report that inflation fell to 23.71% in April 2025.
– Interest Rates: The MPC retained the Monetary Policy Rate (MPR) at 27.50%, with the asymmetric corridor around the MPR at +500/-100 basis points.
Economic Implications:
– Foreign Exchange Market: The CBN’s reforms have led to relative stability in the foreign exchange market, with the Naira closing at N1,598 per Dollar at the official FX market.
– Investor Confidence: The stability and competitiveness of the Naira are expected to attract foreign investments and boost investor confidence.
– Economic Growth: The CBN’s efforts aim to foster sustainable economic growth, with the Governor emphasizing the need for collective efforts to build a transparent, inclusive, and resilient economy.