The Central Bank of Nigeria (CBN) under the leadership of Governor Yemi Cardoso has implemented a series of reforms to address forex issues and create a transparent system in the Nigerian foreign exchange market. These reforms aim to ensure that individuals and businesses in need of foreign exchange can easily access it without having to rely on personal connections .
Key Points:
- Transparent Environment: The CBN’s ultimate goal is to establish a transparent environment in the foreign exchange market, where liquidity is restored and a more vibrant market can thrive. This will help eliminate fluctuations in the exchange rate and create a level playing field for all participants.
- Access to Foreign Exchange: Governor Cardoso emphasized the importance of creating a system where individuals and businesses requiring foreign exchange do not need to have personal connections within the central bank or commercial banks. The reforms aim to establish an open and transparent system where foreign exchange can be obtained on a willing buyer, willing seller basis.
- Active Market and Price Discovery: By implementing these reforms, the CBN aims to encourage a more active market where the price of foreign exchange is determined through market forces. This will help eliminate distortions and ensure that the price of foreign exchange reflects its true value.
- Attracting Foreign Investors: The CBN’s policies have also sparked the interest of foreign investors who had previously left the Nigerian market . These reforms are expected to create a more favorable investment climate, encouraging foreign investors to consider returning to the Nigerian market.