CBN Governor Cardoso Attributes Naira Stability to Economic Reforms
Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), announced on Tuesday that the naira has gained stability and competitiveness due to early and sustained monetary and fiscal reforms. These measures have helped shield Nigeria’s economy from recent global financial turbulence.
Fitch Ratings Upgrade Signals Economic Progress
Speaking to journalists in Abuja after the Monetary Policy Committee meeting, Cardoso highlighted Nigeria’s improved investor confidence and strengthened external reserves. He emphasized that the recent Fitch Ratings upgrade to ‘B’ from ‘B-‘—despite global economic uncertainty—validates Nigeria’s economic turnaround efforts.
“The Fitch upgrade, which came during a period of significant global economic headwinds, makes it even more meaningful,” Cardoso stated. “It is a very positive signal, especially when considering the uncertainty around global trade, interest rates, and capital flows.”
Key Indicators of Economic Stability
Cardoso outlined several positive developments:
- Exchange rate volatility dropped from over 4% to under 0.5%.
- Net external reserves surged from $3 billion to $23 billion.
- Gross reserves now exceed $38 billion, surpassing IMF benchmarks.
“These figures didn’t just happen,” he explained. “They reflect transparency in process, policy consistency, and reforms that encouraged sidelined investors to return.”
Monetary Policy and Investor Confidence
Cardoso stressed that stability fosters confidence, which in turn attracts investment and drives economic growth. He noted that recent monetary tightening and better fiscal coordination have restored market calm.
“We are in a period of heightened global tension, and currencies worldwide have been under attack,” he said. “But Nigeria’s depreciation was modest, and our reforms allowed us to build buffers that absorbed the shocks.”
Future Outlook
The CBN governor highlighted improvements in Nigeria’s trade balance, supported by lower import demand and rising gas exports. He also pointed to reduced fuel importation, thanks to the Dangote refinery and similar projects, easing pressure on foreign exchange demand.
“We are on a mission to restore confidence and build back trust,” Cardoso affirmed. “We want all stakeholders to know they are dealing with a Central Bank that will not disappoint.”
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