The Central Bank of Nigeria (CBN) says the gap between the official naira exchange rate and Bureau de Change (BDC) rates has narrowed to below two per cent, while the country’s external reserves have risen above $52.5 billion, reflecting the impact of its ongoing monetary and foreign exchange reforms.
CBN Governor Olayemi Cardoso, represented by the Acting Director of Corporate Communications and Investor Relations, Hakama Sidi-Ali, disclosed this on Tuesday during the CBN Fair in Gombe.
Cardoso said the reforms introduced since 2023 had significantly reduced the disparity between the official foreign exchange market and the parallel market.
“The naira continues to strengthen, with the spread between official and Bureau de Change rates now below two per cent,” he said.
He attributed the improvement to disciplined monetary tightening, exchange rate reforms and enhanced market transparency.
The CBN governor said rising external reserves, easing inflation and improved foreign exchange market stability were clear indications that the apex bank’s policy reforms were yielding results.
According to him, Nigeria’s external reserves have risen above $52.5 billion, supported by sustained foreign exchange inflows and renewed investor confidence in the economy.
He added that the CBN had implemented several reforms over the past 34 months aimed at promoting sustainable economic growth, creating jobs and reducing poverty.
The reforms include the unification of the foreign exchange market, banking sector recapitalisation, the Non-Resident Bank Verification Number (NRBVN), the B-Match foreign exchange trading system and the Nigeria Payments System Vision 2028.
Cardoso also said the apex bank, in collaboration with the Financial Markets Dealers Association, had introduced the Nigerian Overnight Financing Rate as a benchmark for short-term funding transactions.
He noted that the benchmark would provide a transparent, market-based reference rate while aligning Nigeria’s money market with international standards.
Latest CBN data showed the naira appreciated slightly to N1,362/$ on Tuesday from N1,365/$ on Monday.
Although external reserves have moderated slightly in recent days after reaching recent highs, they remain above June levels.
CBN data showed reserves declined from about $52.04 billion to $51.92 billion between July 23 and July 29. However, the balance remained higher than the $51.46 billion recorded at the end of June, representing an increase of about $463 million over the period.
The reserves had climbed steadily from $49.80 billion at the beginning of June to $51.04 billion by June 18 and $51.46 billion by June 30 before extending gains in early July.
The Monetary Policy Committee (MPC), at its 306th meeting held on July 20 and 21, retained the Monetary Policy Rate (MPR) at 26.5 per cent.
The committee also retained the Cash Reserve Ratio (CRR) at 45 per cent for commercial banks and 16 per cent for merchant banks, while leaving the Standing Facilities Corridor at +50/-450 basis points around the MPR. It also maintained the CRR on non-Treasury Single Account public sector deposits at 75 per cent.
Earlier, CBN Branch Controller in Gombe, Yunusa Buba-Mubi, said the CBN Fair was part of the bank’s public engagement programme aimed at educating Nigerians on its policies while providing stakeholders with an opportunity to offer feedback.
Boluwatife Enome