Naira now best performing currency in the World, following FX Reforms – Cardoso

In an apparent sense of pride and confidence, the Central Bank Governor, Yemi Cardoso stated that the Naira has been declared the best performing currency globally as of April, 2024.

This achievement follows a series of foreign exchange market reforms and is supported by positive sentiment from leading international investment institutions, he declared.

Cardoso made this remark in a press briefing on the sidelines of the just concluded World Bank/IMF Press briefing in Washington DC, United States.

The Naira had the unenviable position of being the worst currency in the country in March when it fell to as low as N1,600/$1 on the official market and N1800/$1 on the parallel market.

However, it has gained a whopping 45% in April so far as a string of forex and monetary policies continue to generate positive impacts on the economy.

What Cardoso is saying

According to him, the FX market in Nigeria has seen a surge in activities with turnover levels reaching highs not observed in over seven years.

This heightened liquidity is believed to instill confidence among investors, businesses, and partners, facilitating smoother transactions within Nigeria’s FX markets.

• April saw the naira emerge as the best-performing currency globally, supported by bullish sentiment from leading international investment institutions.
• Our FX market is experiencing robust activities, with turnover reaching levels not seen in over seven years.
• This liquidity boost instils confidence among investors, businesses, and other partners, ensuring fluidity in their interactions with Nigeria’s FX markets.- Cardoso

Caution is required

Despite the success, Governor Cardoso remains cautious, acknowledging persistent challenges such as elevated inflation, driven by rising food prices, transportation costs, and energy expenses.

However, he noted that inflation is increasing at a decelerated rate and expressed confidence in its anticipated decline.

• “However, we remain vigilant, recognizing the challenges that persist, such as elevated inflation driven by rising food prices, transportation costs, and energy expenses. We note that inflation though rising is doing so at a decelerated rate and we are confident will soon commence a fall.”
• “Security concerns in food-producing regions and infrastructure challenges also demand attention.”
• “The CBN has implemented a number of policy reforms to address some of these various pressures and, while I am confident enough today to talk about some of our early success, I am at the same time extremely mindful of our ongoing challenges.” – Cardoso

The CBN has introduced several policy reforms aimed at stabilizing the economy and addressing various pressures. While celebrating these early successes, the Governor stressed the importance of remaining vigilant and proactive in tackling the myriad of challenges that still lie ahead.

This strategic focus is expected to continue supporting the Naira’s strong performance on the global stage.

• “We still have work to do in solving all our problems, however, we do have a determined pathway and a sequenced approach to tackling all challenges ahead, working hand in hand with our key stakeholders including investors, banks, businesses and, notably, our counterparts on the fiscal side.”
• “We have recommitted our stance to orthodox monetary policy, and it is heartening to see the efforts being put up have started yielding results especially in terms of rebuilding trust and confidence in our economy and the leadership.” – Cardoso