The Central Bank of Nigeria (CBN) has vowed to maintain a heightened level of surveillance in the foreign exchange market and root out bad actors and practices that threaten the smooth functioning of the market and stability of the exchange rate.
CBN Governor Olayemi Cardoso said in his statement at the February 2025 Monetary Policy Committee (MPC) meeting with reference number CBN/MPC/COM/156/299, which was published on Tuesday on the apex bank’s website.
“Given the importance of the exchange rate in the fight against inflation and the sustenance of economic recovery and broader financial stability,” the CBN governor said, “We must maintain a heightened level of surveillance in our foreign exchange market and root out any bad actors and practices that threaten the smooth functioning of the market and stability of the exchange rate. The Central Bank has an unwavering commitment to this objective.”
Also in the statement, Mr Cardoso said the MPC “highlighted the benefits of the improvements in the external sector to exchange rate stability, including the convergence of rates between the Nigeria Foreign Exchange Market (NFEM) and the Bureau de Change (BDC), and urged the Bank not to relent in its effort to boost market liquidity.
“In this regard, the Committee acknowledged recent measures introduced by the Bank, such as the Electronic Foreign Exchange Matching System (B-Match) and the Nigeria Foreign Exchange Code, to foster transparency, ethics and credibility in the market.”
Dateline Nigeria reports that at the meeting, the committee voted “to retain the Monetary Policy Rate (MPR) at 27.50 per cent, the asymmetric corridor around the MPR at +500/-100 basis points, Cash Reserve Ratio of Deposit Money Banks at 50.00 per cent and Merchant Banks at 16
per cent, and the Liquidity Ratio at 30.00 per cent.”
