Naira exchange rates determined by demand and supply of forex – CBN

The Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, says the value of the Naira is determined by the availability of foreign exchange.

Cardoso said this on Tuesday in Abuja while addressing the House of Representatives on Naira depreciation and the instability in the foreign exchange market.

According to him, the exchange rate is determined by the dynamics of supply and demand for a product or service similar to the pricing of cows or cars.

“The value of the dollar in Nigeria is determined by the balance of dollars entering the country and the demand for dollars among Nigerians.

“The exchange rate in Nigeria has increased due to the simultaneous occurrence of two factors: a decline in the supply of dollars coinciding with a surge in the demand for dollars,” he said.