CBN governor Cardoso blames naira’s depreciation on ‘demand season’

The naira’s depreciation and volatility have been attributed by Olayemi Cardoso, the Central Bank of Nigeria’s governor, to fluctuations in global foreign exchange market demand throughout the year.

Nigeria News 247’s investigation into Aboki Forex revealed that the naira, which was exchanged for N1,000 in April, was being sold for N1,500 on Wednesday afternoon.

During the Monetary Policy Committee (MPC) meeting in Abuja on Tuesday, Mr. Cardoso remarked that the instability of the naira was a result of the interaction between demand and supply.

The members also noted the recent fluctuations in the foreign exchange market, attributing it to seasonal demand and emphasizing the importance of a well-functioning market system based on demand and supply dynamics.

Mr. Cardoso stated that officials at the CBN were devising strategies to alleviate the economic strain caused by seasonal demands.

On Tuesday, Mr. Cardoso expressed optimism by stating that progress is being made with the tools employed by the CBN, as evidenced by recent developments.

The approval of 14 International Money Transfer Operators (IMTO) was highlighted as a positive step towards fostering healthy competition, a sentiment echoed by the MPC.

This move is anticipated to enhance competition, reduce transaction costs, and encourage more remittances through official channels.

The fluctuating value of the naira has been negatively impacting Nigerians’ purchasing power due to their reliance on imported goods for daily necessities.