The CBN says the Naira is not being artificially propped up, stressing that the stability witnessed recently is market-driven following reforms and increased liquidity. This was revealed on Wednesday by Governor Olayemi Cardoso while briefing journalists in Abuja after the Monetary Policy Committee (MPC) meeting.
The Governor said: “The CBN’s participation in the FX market does not account for much when considering total turnover, just about 1.2 to 1.3% in 2025, and has dismissed claims that the Bank has been defending the naira.”
He pointed out that after the past two years’ reforms of the foreign exchange market, the market had become much more transparent and market-driven.
He added: “The market is now largely working on its own. Our interventions are very marginal relative to total market turn”.
Cardoso explained that with the total market turnover jumping from an average of $361.1 million to between $550 million and $1 billion, it occasionally reflects greater liquidity.
Cardoso said: “In 2025, it was about 1.2 to 1.3%. That is not what is driving the market.”
Punch reports that the governor added that, with increased transparency and information sharing between CBN and market participants, coupled with adoption of the “willing buyer, willing seller” principle and use of an electronic trading platform that has minimised distortions in the market and speculatory attacks that had driven the exchange rate in the past.
