The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, said on Friday the true value of the Naira would be restored with the introduction of an electronic forex matching system.
Cardoso gave the assurance during the 59th annual bankers’ dinner organised by the Chattered Institute of Bankers of Nigeria in Lagos.
He said the CBN had undertaken critical reforms to unify Nigeria’s exchange rate, eliminate distortions, and restore transparency in the system.
“To further enhance the functionality of the foreign exchange market, we are introducing an electronic FX matching system, which has proven effective in other markets,” the CBN governor stated.
He said panic buying was one of the reasons for FX volatility.
Cardoso noted that the current dollar exchange rate reflected the price that the most desperate buyers were willing to pay, saying this did not represent the true market value of the Naira.
“The introduction of the electronic matching system will correct these distortions by enhancing the price discovery process.
“Additionally, it will significantly boost the Central Bank’s oversight and intervention capabilities, ensuring a more stable and transparent foreign exchange market,” he concluded.
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