The Central Bank of Nigeria CBN plans to diversify the nations reserve base.
The Governor of the CBN, Mr. Olayemi Cardoso, gave the hint at the opening of the Afreximbank Annual Meetings AAM in Abuja, yesterday.
Foreign Reserve diversification refers to the practice of central banks and monetary authorities reducing their reliance on a single currency, usually the US dollar, by holding a wider range of assets in their foreign exchange reserves. This involves increasing holdings of other major currencies like the euro, yen, and yuan, as well as assets like gold and Special Drawing Rights SDRs.
He did not provide details on the diversification but said it would be part of the reforms by the monetary authorities to better position the nations FX market in the interest of the economy.