BY BONNY AMADI WITH AGENCY REPORT
The commitment by the Central Bank of Nigeria (CBN) to strengthen the foreign Exchange market (FX) to check over reliance on the US Dollar, is on the front burner as the apex bank has assured strengthening monetary reforms.
As a result, the Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, has announced plans by the apex bank to diversify the country’s foreign exchange reserves as part of broader reforms to strengthen Nigeria’s financial system.
Cardoso made the dis closure at the opening of the Afreximbank Annual Meetings (AAM) in Abuja, which commenced on June 25th, to end June 28th 2025.
Cardoso though did not provide specific details, he however assured that the move would be a key component of monetary reforms aimed at repositioning the foreign exchange market in the interest of long-term economic stability.
Foreign reserve diversification is a strategy used by central banks to reduce reliance on a single currency, typically the US dollar by expanding their portfolio to include other major currencies like the euro, yen, and yuan, as well as assets such as gold and Special Drawing Rights (SDRs).
He noted that the initiative is part of the CBN’s ongoing policy reforms in the foreign exchange market aimed at boosting diaspora remittances and supporting the stability of the Naira.
“We have introduced two financial products, namely the non-resident Nigerian ordinary account and the non-resident Nigerian investment account designated to serve Nigerians living abroad.
According to the CBN Governor, this initiative is expected to provide a secure and efficient platform for managing funds invested in the Nigerian financial markets.
He explained that the initiative would harness the economic potential of Nigerians in the diaspora by boosting remittances and fostering investment in critical sectors of the economy.
“It is therefore imperative for initiatives such as this to be embraced to ensure that Africa and its diaspora continue to act in unison,” he said.
Cardoso stated that the initiative is certainly going to be a game changer, and people will now begin to understand much better how Nigeria is diversifying its revenue base and reserve base.
However, he emphasised that African nations must take proactive steps to protect the continent from global economic shocks. At the CBN, he said, his focus has been on rebuilding confidence among stakeholders and international partners.
In his remarks, the Senior Vice President of Afreximbank, Mr. Denys Denya, recalled that when the bank was established 32 years ago, it faced significant resistance both within Africa and from external actors.
He reminded the audience that Afreximbank was conceived as Africa’s strategic response to a series of crises at the time. Yet, its formation encountered stiff opposition—an indication, he said, that some forces were determined to maintain the continent’s dependency and obstruct its development.
Despite the challenging beginnings, Denya noted, the bank has grown into a systemically important institution, now playing a vital role in supporting clients and driving Africa’s development agenda.
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