CBN Advocates Deeper Economic Ties with Middle East

On Feb 18, 2025

The Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, has called for the need to strengthen economic relations with the Middle East and the Nigerian diaspora in the region.

This was disclosed in a statement issued by the CBN Corporate Communications Department on Monday in Abuja.

The statement was made by Cardoso during a meeting with Talal Al-Humond, the Assistant Governor for Monetary Affairs at Saudi Arabia Central Bank.

It was on the sidelines of the just-concluded inaugural Conference on Emerging Markets Economies organised by the Ministry of Finance, Saudi Arabia, and the International Monetary Fund (IMF) Regional Office in Riyadh.

#AlUlaCEME2025 CBN Governor Olayemi Cardoso, at the Inaugural Economic Policy Conference for Emerging Market Economies organised by the Ministry of Finance, Saudi Arabia, and the International Monetary Fund (IMF) Regional Office in Riyadh, has canvassed stronger economic ties… pic.twitter.com/pL61LHtD42

— Central Bank of Nigeria (@cenbank) February 17, 2025

Cardoso said that there were lessons to be learnt from Saudi Arabia in terms of infrastructure development and tourism.

According to him, Saudi Arabia’s dedication to diversifying its economy through innovative environmental projects, large-scale transformation, and tourism investment is essential for development.

He also reaffirmed his dedication to collaborating with the Nigerian Diaspora community in the Middle East to improve remittance flows and strengthen Nigeria’s financial sector.

Discussing policy challenges in emerging markets: L-R: Director, Middle East and Central Asia Department, IMF, Jihad Azour; the Minister of Finance, Qatar, Ali bin Ahmed Al Kuwari; President, Asian Infrastructure Investment Bank, Jin Liqun; the Governor, Central Bank of Nigeria, Mr. Olayemi Cardoso; and the Dean, School of Economics and Business, University of Chile, José De Gregorio

He said that the CBN would continue enhancing macroeconomic fundamentals to establish an enabling environment that would facilitate the growth of the private sector and the generation of high-quality jobs.

Meanwhile, during a panel discussion, Cardoso cited reforms in the financial markets that addressed distortions in the Nigerian foreign exchange market.

He said that the market had previously experienced a gap of up to 60 per cent between the official and parallel market exchange rates.

Cardoso said that due to consistent policy direction, improved market confidence, and enhanced transparency in forex trading, the gap had significantly narrowed to approximately about five per cent.

He highlighted the adoption of an electronic matching system to improve transparency in the market.

The CBN governor said that there was also the newly introduced foreign exchange code of ethics, which all Nigerian banks signed to ensure adherence to market rules.

“As a result of these measures, the country’s foreign reserves have exceeded 40 billion dollars, marking the highest level in nearly three years.

“Nigeria has faced significant economic challenges, including capital flow exits, multiple exchange rate regimes, currency depreciation, high inflation, and a backlog of foreign exchange transactions.

“They led to a loss of confidence in the country’s currency,” he said.

Talal Al-Humond assured the CBN governor that the Saudi Central Bank would work with him to ensure the attainment of mutually beneficial objectives.

NAN