The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, has announced that volatility in the foreign exchange (FX) market has declined significantly, falling below 0.5%, as Nigeria’s monetary and fiscal reforms begin to stabilise the macroeconomic environment.
Speaking during a press briefing in Abuja on Tuesday following the 300th Monetary Policy Committee (MPC) meeting, Cardoso emphasised that the reduction in exchange rate volatility was a key indicator of the improving health of the Nigerian economy, underpinned by restored investor confidence, improved foreign exchange reserves, and greater transparency in CBN operations.
The CBN Governor attributed the sharp drop in FX volatility—from levels above 4% a year ago to below 0.5% currently—to a combination of policy consistency, orthodox monetary tightening, and transparency initiatives pursued over the past 18 months. He noted that the central bank’s early decisions to liberalise the FX market, unify exchange rates, and boost supply through market-based reforms have begun to yield measurable results.