Cardoso vows tougher penalties for FX dealers exploiting system

Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, has vowed to penalize authorized dealers found manipulating the foreign exchange (FX) system.

Speaking at the launch of the Nigeria Development Update (NDU) report in Abuja, Cardoso stressed that the CBN will implement policies promoting market efficiency while imposing stricter sanctions on those exploiting the FX framework.

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“The Central Bank does not determine the exchange rate. Exchange rates are determined by fundamentals,” Cardoso said, warning that authorized dealers found manipulating the system will face increasing penalties.

He also highlighted the gradual restoration of confidence in the naira, driven by tighter monetary policies and higher interest rates. Cardoso stressed that trust in the currency is vital, adding, “You cannot expect anybody to have confidence in your currency if they do not trust you.”

The CBN governor reiterated the bank’s commitment to maintaining policy consistency and transparency to strengthen public trust in the naira and its operations.