CBN Says Nigerians’ Confidence in Naira Strengthens As Official, Black Market Rates Converge
- The naira has stabilised in recent weeks against the US dollar in the official and unofficial exchange rate markets
- CBN is happy and has expressed optimism that confidence in the naira is rising as more transactions are now done in naira
- On Wednesday, the naira recorded an exchange rate convergence between the official and parallel markets
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Central Bank of Nigeria has revealed that confidence in the naira is strengthening among citizens and investors.
Speaking after the MPC meeting on Tuesday, July 22, Governor Olayemi Cardoso said the confidence is because ongoing reforms and macroeconomic policies are beginning to yield results.
Source: Getty Images
Cardoso said:
“The policy measures we have introduced are working.
“A lot of what you see going on now is transformational. And they are here to stay. Some of the banks are now allowing you to use your naira cards when you travel. Those things are here to stay. They are not a short-term measure."
Cardoso also pointed to the narrowing gap between official and parallel exchange rates, increased overseas acceptance of naira-denominated cards, and improved confidence from global institutions, BusinessDay reports.
He described these as structural developments rather than short-term interventions.
He added:.
“Some of the banks now allow you to use your naira cards when you travel. These changes are here to stay."
On Wednesday, the naira in the official and black market exchanged at N1,535 against the US dollar.
More good news for naira
The CBN governor also noted that international financial institutions and credit rating agencies have taken notice.
He referenced recent positive outlook revisions from Moody’s and endorsements from the International Monetary Fund, saying they underscore growing investor confidence in Nigeria’s economic direction.
He said:
“Potential investors take a cue from such institutions. Their recognition affirms that our macroeconomic framework is being repositioned in the right direction."
Source: Getty Images
Although headline inflation remains high, Cardoso said some signs that tightening monetary conditions are having the desired effect. The CBN is targeting a return to single-digit inflation in the medium term.
He attributed current inflationary pressures to past years of excess liquidity driven by deficit financing and interventionist programs.
He pledged to maintain a tight monetary stance to restore price stability, even if it comes at short-term costs.
Looking ahead, the CBN governor said that transparency, consistency, and coordination between fiscal and monetary authorities will be essential in sustaining reforms and deepening investor trust.
He concluded:
“These are not cosmetic changes. They are transformative, and they require continued collaboration to succeed,”
Nigerian banks resume foreign transactions in naira
Earlier, Legit.ng reported that Wema Bank and United Bank of Africa (UBA) have separately announced the resumption of foreign transactions on their naira cards.
This came after about three years since numerous banks stopped allowing foreign transactions using Naira debit cards.
UBA, in a recent notification to its customers, explained that the restart aligns with its continued dedication to providing smooth and improved banking services.
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Source: Legit.ng
