Olayemi Cardoso, the governor of the Central Bank of Nigeria, has blamed the naira’s decline and instability on the “seasonal demand” of the global foreign exchange market.

Peoples Gazette checks on Aboki Forex indicated that the naira exchanged in April for N1,000 was selling for N1,500 Wednesday afternoon.

Speaking at the Monetary Policy Committee (MPC) meeting in Abuja on Tuesday, Mr Cardoso said the naira’s instability reflected the interplay between demand and supply.

“Members further observed the recent volatility in the foreign exchange market attributing this to seasonal demand, a reflection of the interplay between demand and supply freely functioning market system,” Mr Cardoso said.

The CBN chief, however, said the officials were working out modalities that would relieve the nation from the economic burden of “seasonal demands.”

“There is light at the end of the tunnel,” Mr Cardoso said Tuesday. “We are beginning to get some reliefs” which he said were proofs that “the tools that the CBN is using is working.” 

The CBN governor said the approval of 14 International Money Transfer Operators (IMTO) was a step in the right direction as it would engender healthy competition.

“The MPC commended the bank for its recent approval of 14 International Money Transfer Operators (IMTO),” Mr Cardoso stated. “This is expected to improve competition and lower the cost of transactions, thus attracting more remittances through formal channels.”

The instability of the naira was affecting the purchasing power of Nigerians, who depend heavily on imported goods for daily survival.