The Governor of the Central Bank of Nigeria, Mr. Olayemi Cardoso, stated that the naira is currently undervalued, and efforts are being made to ensure the local currency is adequately priced.

The naira settled at N878.61 to the dollar at the Nigerian Autonomous Foreign Exchange Market and N1,365/$1 at the parallel market.

During the launch of the Nigerian Economic Summit Group 2024 Macroeconomic Outlook Report, Cardoso said, “We believe that the naira is currently undervalued, and, coupled with coordinated measures on the fiscal side, we will expedite genuine price discovery in the near term. This coordinated approach will contribute to a more balanced and stable exchange rate.”

He emphasized the importance of transparency in stabilizing the exchange rate, stating that the CBN is implementing a comprehensive strategy to improve liquidity in FX markets.

Cardoso mentioned that positive outcomes are already visible, and the ongoing reforms will bring significant and positive changes for the economy.

Cardoso expressed satisfaction with the collaboration between the CBN, Ministry of Finance, and the NNPCL to ensure that all FX inflows are returned to the Central Bank.

This collaborative effort is expected to enhance the Bank’s FX flows and contribute to the accretion of reserves.

He highlighted the expected stability in the foreign exchange market for 2024, attributing it to the reduction in petroleum product imports and the implementation of a market-determined exchange rate policy by the CBN.

The CBN governor also outlined expectations for the Services, Agriculture, and Industry sectors, emphasizing the importance of economic transformation under the central theme, “Economic Transformation Roadmap: Medium-Term Policy Priorities.”