The Central Bank of Nigeria (CBN) plans to diversify the nation’s foreign reserve base, according to Governor Olayemi Cardoso. This move aims to strengthen Nigeria’s financial system and reduce reliance on a single currency, typically the US dollar, by holding a broader range of assets in foreign exchange reserves.
The CBN will hold a wider range of assets, including major currencies like the euro, yen, and yuan, as well as assets like gold and Special Drawing Rights (SDRs).
The diversification is part of ongoing monetary reforms designed to reposition Nigeria’s foreign exchange market for long-term economic stability.
The CBN has introduced two financial products to boost diaspora remittances and support Naira stability:
For managing funds and investing in Nigerian financial markets.For fostering investment in critical sectors of the economy.
The CBN aims to shield Nigeria from global economic shocks and build confidence among stakeholders and partners.
The diversification strategy is expected to be a game-changer, enhancing public understanding of Nigeria’s revenue and reserve base diversification.
