Central Bank of Nigeria Maintains Hands-Off Approach to Forex Market

Nigeria’s Central Bank Governor, Mr. Olayemi Cardoso, reaffirmed the bank’s policy of non-intervention in the foreign exchange market on Wednesday. This reiterates the CBN’s commitment to a system where exchange rates are primarily determined by market forces.

Governor Cardoso’s statement comes amidst ongoing discussions about the value of the Nigerian Naira. The CBN’s policy of non-intervention suggests they believe the market will find a natural equilibrium for the exchange rate.

Previously, central banks would sometimes buy or sell foreign currencies to influence exchange rates. However, the CBN’s current stance indicates a preference for a market-driven approach.

The long-term effects of this policy remain to be seen. Some experts believe a market-driven system can foster efficiency and transparency in the foreign exchange market. However, others caution of potential volatility if left unchecked.

READ ALSO:  CBN Boosts Foreign Exchange Market With $210m

Let Zebra News help your business/brand reach a wider audience. Advertise with us today! Contact Our Marketing Team; Tel: 08062622328, 07083662767. Email: zebranewsng@gmail.com