CBN declares forex market stable as reserves hit $52.5bn

By Boluwatife Oshadiya | August 5, 2026

Key Points

• Nigeria’s external reserves climbed above $52.5 billion, their highest level in 17 years, according to the Central Bank of Nigeria (CBN)
• The CBN says recent monetary and foreign exchange reforms have helped stabilise the naira, narrow exchange rate disparities and ease inflation
• The apex bank urged Nigerians to rely only on its verified communication channels for information on monetary policies and financial services

Main Story

The Central Bank of Nigeria (CBN) says recent reforms in the country’s monetary and foreign exchange markets are delivering positive results, citing stronger external reserves, improved exchange rate stability and moderating inflation as key indicators of progress.

Speaking on Tuesday at the CBN Fair in Gombe, CBN Governor Dr Olayemi Cardoso, represented by the Acting Director of Corporate Communications and Investor Relations, Mrs Hakama Sidi-Ali, said Nigeria’s external reserves had risen above $52.5 billion as of July 17, 2026, exceeding the bank’s annual target and marking the country’s highest reserve level in 17 years.

Cardoso said the improvement reflects sustained foreign exchange inflows and renewed investor confidence in Nigeria’s economy following a series of monetary policy and market reforms implemented over the past 34 months.

He added that inflationary pressures continue to ease, with headline inflation declining slightly from 15.93 per cent in May to 15.91 per cent in June 2026, while both core and food inflation also recorded modest declines.

According to the CBN governor, the reforms have also strengthened the naira, with the spread between the official foreign exchange market and Bureau de Change (BDC) rates falling below two per cent, a development he attributed to improved market transparency and exchange rate reforms.

The reforms highlighted by the apex bank include the unification of Nigeria’s foreign exchange market, banking sector recapitalisation, the introduction of the Non-Resident Bank Verification Number (NRBVN), deployment of the B-Match foreign exchange trading platform, implementation of the Nigeria Payments System Vision 2028, and a 75 per cent Cash Reserve Ratio (CRR) on non-Treasury Single Account (TSA) public sector deposits to improve liquidity management and curb inflation.

Cardoso also noted that the CBN, in collaboration with the Financial Markets Dealers Association (FMDA), introduced the Nigerian Overnight Financing Rate (NOFR) to provide a transparent, market-based benchmark for short-term funding transactions and align Nigeria’s money market with international standards.

The governor said the Gombe fair forms part of the bank’s nationwide public engagement programme aimed at promoting financial inclusion through alternative payment channels while creating opportunities for Nigerians to better understand the CBN’s policies and operations.

What’s Being Said

“The naira continues to strengthen, with the spread between official and Bureau de Change rates now below two per cent,” said Dr Olayemi Cardoso, Governor, Central Bank of Nigeria, represented by Mrs Hakama Sidi-Ali, Acting Director of Corporate Communications and Investor Relations.

“The fair is one of the bank’s platforms for engaging the public on its policies and programmes,” Cardoso said, urging Nigerians to seek information only from the CBN’s verified communication channels while discouraging acts such as spraying, mutilating, hawking or counterfeiting the naira.

Earlier, Yunusa Buba-Mubi, CBN Branch Controller in Gombe, said the fair was designed to educate citizens on the bank’s policies while providing stakeholders with an opportunity to offer feedback on its programmes.

What’s Next

• The CBN is expected to continue implementing its monetary and foreign exchange reforms as it seeks to sustain exchange rate stability and further moderate inflation.
• The apex bank will expand public engagement through subsequent editions of the CBN Fair to deepen financial inclusion and promote the adoption of digital payment channels.
• Investors and market participants will closely monitor upcoming inflation data and future monetary policy decisions for indications of the next phase of the CBN’s policy direction.

Bottom Line

The Bottom Line: The CBN is increasingly pointing to stronger reserves, a narrower official-parallel market exchange rate gap and easing inflation as evidence that its reform agenda is gaining traction. The sustainability of these gains, however, will depend on continued foreign capital inflows, fiscal discipline and the bank’s ability to maintain confidence in the foreign exchange market.

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