Naira Depreciates by 51.5% Under Governor Cardoso's Leadership at CBN

Under the leadership of Governor Olayemi Cardoso at the Central Bank of Nigeria (CBN), the Naira depreciated by 51.5 percent against the US dollar in the official market over the past year.

Cardoso, who was appointed on September 15, 2023, has now completed one year in office. Despite several interventions aimed at stabilizing the foreign exchange market, the Naira's performance remains under pressure. According to data from the FMDQ, the Naira fell from N747.76 recorded in the same period last year to N1,541.52 per dollar by September 22, 2024.

In an effort to combat inflation, which stood at 32.15 percent in August 2024, the Cardoso-led Monetary Policy Committee (MPC) increased the Monetary Policy Rate (MPR) four times over the past year, bringing it to 26.75 percent. The MPC is currently meeting to discuss whether to continue raising interest rates or to halt further increases.

Meanwhile, recent data from the CBN indicates that the nation’s external reserves reached a 22-month high of $37.39 billion as of September 19, 2024.

Despite these measures, many Nigerians continue to face difficult economic conditions, marked by rising food prices and increasing energy costs, which have compounded the impact of the Naira’s depreciation.