Naira Depreciates 51.5% Against Dollar in One Year Under CBN Governor Cardoso

Nigeria’s currency, the Naira, has seen a significant depreciation of 51.5% against the dollar in the official market over the past year, coinciding with Olayemi Cardoso’s tenure as Governor of the Central Bank of Nigeria (CBN). Cardoso marks one year in office as of September 15, 2024.

Despite various interventions from the CBN, the Naira’s performance in the foreign exchange market has raised concerns. According to data from the FMDQ, the Naira dropped from N747.76 per dollar last year to N1,541.52 per dollar as of September 22, 2024.

During this period, Cardoso’s Monetary Policy Committee (MPC) implemented four hikes in the monetary policy rate, raising it to 26.75% in an effort to tackle inflation, which reached 32.15% in August 2024. The MPC is currently deliberating on whether to continue increasing rates or to pause.

In recent months, Nigeria’s external reserves have seen a boost, reaching a 22-month high of $37.39 billion as of September 19, 2024. However, many Nigerians continue to face economic challenges, grappling with rising food prices and soaring energy costs, raising questions about the effectiveness of the CBN’s policies under Cardoso.