The monetary policy committee, MPC, of the Central Bank of Nigeria, CBN, says the volatility in the foreign exchange market is caused by the seasonal demand for forex.
Speaking on Tuesday during the press briefing of the committee’s 295th meeting in Abuja, Olayemi Cardoso, CBN’s governor, said the committee urged the CBN to sustain its focus on the gradual growth of foreign reserves after noting the marginal increase in the external reserve balance between March and April.
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According to him, the committee commended the apex bank for the recent approval of licences of 14 international money transfer operators (IMTOs), which, he says, is expected to improve competition and lower the cost of transactions, thereby attracting more remittances through formal channels.
The naira has been fluctuating at the official and parallel markets, trading below N1,600/$ and above N1,400 per dollar in the last two weeks.
