The Central Bank of Nigeria (CBN) governor, Olayemi Cardoso, stated that the country's foreign exchange market now operates with greater liquidity and transparency, following a shift to a market-driven system. He made the remarks during a joint press briefing in Washington, DC, alongside finance minister Wale Edun, as part of Nigeria's engagement at the 2026 spring meetings of the International Monetary Fund and World Bank. Cardoso emphasized that the FX market, previously dominated by central bank control, now functions on the principles of willing buyers and willing sellers, with visible transactions and minimal intervention. He noted that daily turnover in the market averages $500 million, often achieved without CBN involvement, signaling improved investor confidence. Despite a drop of $1.37 billion in Nigeria's foreign reserves over six weeks, Cardoso described the decline as not concerning, attributing it to normal market activity rather than systemic pressure. He maintained that the current system allows investors to enter and exit freely, reinforcing the stability of the new framework. Edun supported the assessment, aligning the ministry of finance's position with the CBN's outlook on the FX reforms. The delegation's participation in the IMF and World Bank meetings focused on economic policy coordination and international financial cooperation. No specific African or Nigerian connection beyond the delegation's presence was mentioned in the context of broader global discussions. The next steps involve continued monitoring of the FX market's performance under the current structure.
A $1.37 billion reserve loss in six weeks is being dismissed as routine while the CBN celebrates a market-driven FX system that still struggles with volatility. The same system allowing free investor movement also enables rapid reserve depletion without safeguards. If daily turnover is now $500 million without intervention, the scale of outflows demands scrutiny, not reassurance. Confidence cannot be measured only by activity—it must also be reflected in reserve stability.
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