Governor Yemi Cardoso of the Central Bank of Nigeria has disclosed that the foreign exchange market received a boost of over $1 billion in liquidity within the past few days.
Cardoso made this disclosure in a statement on Friday during a presentation in the Senate floor in Abuja. According to the CBN governor, there has been an upward shift in the FX market as a result of the recent reforms initiated by the apex.
Cardoso assured the Senate that the reforms have generated significant interests from foreign portfolio investors.
“We have already begun to see shifts in a positive direction. Indeed, we have already begun to see positive results with significant interest from foreign portfolio investors which was a concern that already begun to supply the much needed foreign exchange to the economy.
“For example, upward of the last few days. We have had over $1 billion that have come into the market. And this quite frankly is the answer to the question.”
What you should know
The naira in the past week had tumbled approaching the N1500/$ threshold on the official market prompting the CBN to take action by implementing a series of measures, including lifting the cap on exchange rates quoted by International Money Transfer Operators (IMTOs).
The CBN in the past years under the leadership of Gov. Godwin Emefiele had carried out various development programs across agriculture, manufacturing, MSMEs, energy, etc prominent among them was the anchor borrower program which gulped around N1.01 trillion.
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I am a journalist and a political and socioeconomic analyst currently employed at Nairametrics. I pride myself on being a skilled wordsmith with a passion for delving into contemporary political issues on both a national and international scale. Additionally, I contribute research-based columns and op-eds to national publications.