FX market turnover now $500m daily without CBN participation, says Cardoso

The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso says the country’s foreign exchange (FX) market is now recording an average daily turnover of $500 million — often without the CBN having to intervene.

Cardoso spoke at a press briefing after the 303rd CBN monetary policy committee (MPC) meeting in Abuja on Tuesday.

He said Nigeria now operates a market driven by “willing buyers and willing sellers,” with transparent processes that allow participants to see who is buying and who is selling at any point in time.

“What we have in the foreign exchange market in Nigeria today is something that has not happened before,” Cardoso said.

The MPC retained the benchmark interest rate at 27per cent, extending its pause on monetary tightening. Cardoso said, “All the 12 members of the Committee were present. The MPC decided by a majority vote to maintain the monetary policy stance,” indicating that members were not yet convinced that current economic conditions warranted another reduction.

Despite the positive signals, Cardoso announced that the MPC has retained the Cash Reserve Requirement at 45per cent for deposit money banks and 16per cent for merchant banks, describing the move as necessary to preserve liquidity discipline and consolidate macroeconomic stability.

He said commercial banks are actively building capital buffers in line with ongoing recapitalisation efforts, adding that 16 banks have fully met requirements, while 27 others have raised capital through various means. He argued that stronger capital positions would support banks’ continental operations and better serve Nigerian businesses across Africa.