Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, has revealed that the soon-to-be-introduced electronic FX matching system will address the disconnect between the current naira-to-dollar exchange rate and the naira’s true market value.
Speaking at the Bankers’ Committee Annual Dinner held on November 29, 2024, at Eko Hotel, Lagos, Cardoso emphasized that the system would enhance price discovery and restore stability to the foreign exchange (FX) market.
According to Cardoso, the naira’s current exchange rate reflects the actions of desperate buyers rather than genuine market dynamics.
“The current USD exchange rate reflects the price that the most desperate buyers are willing to pay, and this does not represent the true market value of the naira,” he said. The FX matching system, he noted, will correct these distortions, creating a more transparent and stable FX market.
The electronic FX matching system is part of broader efforts by the CBN to unify Nigeria’s exchange rate and eliminate market distortions.
Over the past year, the CBN has implemented significant reforms, including clearing outstanding foreign exchange obligations, which have bolstered confidence among businesses, particularly manufacturers and airlines.
“The introduction of the FX matching system will enable the Central Bank to monitor the market more effectively and intervene where necessary. This will significantly improve transparency and provide a more accurate reflection of the naira’s value,” Cardoso stated.
