The Central Bank of Nigeria (CBN) is set to diversify the nation’s foreign reserve base, as announced by CBN Governor Mr. Olayemi Cardoso during the Afreximbank Annual Meetings in Abuja.
Foreign reserve diversification aims to reduce reliance on a single currency, typically the US dollar, by incorporating a variety of assets, including other major currencies like the euro, yen, and yuan, as well as gold and Special Drawing Rights (SDRs). While details of the diversification strategy were not disclosed, Cardoso emphasized that it is part of ongoing reforms to strengthen the foreign exchange market and enhance the economy.
He highlighted new financial products aimed at Nigerians living abroad, including a non-resident Nigerian ordinary account and a non-resident Nigerian investment account. These initiatives are designed to secure and efficiently manage funds invested in Nigeria, boosting remittances and investment in critical sectors.
Cardoso stated, “This initiative is certainly going to be a game changer,” and called for collective efforts to ensure that Africa and its diaspora act in unison.
In his address, Senior Vice President of Afreximbank, Mr. Denys Denya, reflected on the bank’s resilience and growth since its establishment, noting that it has become a symbol of African financial strength.
Vice President Kashim Shettima praised Afreximbank for investing over $52 billion in Nigeria and emphasized the bank’s role in various strategic projects aimed at enhancing the country’s economic resilience and shared prosperity.
The meeting also featured discussions on the importance of developing an African rating agency to better assess African economies and promote intra-African trade through initiatives like the Pan-African Payment System (PaPS).
