The Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, says the Naira is stable and more competitive in the foreign exchange market, indicating stability for the Nigerian economy.
He made the disclosure at the end of the 300th Monetary Policy Committee (MPC) meeting in Abuja on Tuesday, May 20, where key interest rates were held steady for yet another period.
“Given the relative stability in the foreign exchange market, members urge the bank to sustain the implementation of the ongoing reforms to further boost the economy,” Mr Cardoso said.
Business Post reports that the Naira had closed at N1,598 per Dollar at the official FX market on Monday.
He said the MPC also lauded new policies introduced by the federal government to boost local production, reduce foreign exchange demand pressure, and lessen the pass-through of higher rates to domestic prices.
The CBN Governor also said the MPC believes that the Nigerian economy is now stable, urging private individuals interested in investing in the economy to take the initiative.
The apex bank retained the Monetary Policy Rate (MPR) at 27.50 per cent, same as the asymmetric corridor around the MPR at +500/-100 basis points, and helf the Cash Reserve Ratio of Deposit Money Banks at 50.00 per cent and Merchant Banks at 16 per cent, and retain the Liquidity Ratio at 30.00 per cent.
While relating the decision of the MPC on Tuesday, Mr Cardoso referenced the National Bureau of Statistics (NBS) inflation rate for April, pegged at 23.71 per cent.
According to NBS, the annual inflation rate fell to 23.71 per cent in April 2025, from 24.23 per cent in the prior month. Food inflation, the largest component of the inflation basket, remained elevated but moderated to 21.26 per cent from 21.79 per cent in March, mainly on account of prices of some items such as maize, wheat, yam and wheat.
“The inflation numbers speak for themselves. The overall trajectory is in the right direction. There is no one solution to solve the economic challenges. What will solve the problem is a multiplicity of overall efforts.
“The journey will begin to yield greater results as time goes on, given the relative stability in the foreign exchange market,” he said.
The CBN Governor added that the Naira is more competitive and “this should encourage more exports if we continue in the trajectory. I am very optimistic.”