CBN Moves to Cut Dollar Reliance, Diversify Foreign Reserves

The Central Bank of Nigeria (CBN) has announced a new strategy to reduce the country’s dependence on the US dollar by diversifying its foreign reserves.

Speaking at the Afreximbank Annual Meetings in Abuja on Wednesday, June 25, CBN Governor Olayemi Cardoso said the move is part of broader efforts to stabilise the naira and strengthen Nigeria’s economic resilience.

Cardoso explained that the bank is considering expanding reserve holdings to include other currencies such as the euro, yen, and yuan, as well as assets like gold and Special Drawing Rights (SDRs). Although he didn’t provide full details, he described the shift as a potential game changer for Nigeria’s economy.

He also introduced two new financial products aimed at Nigerians living abroad—the non-resident Nigerian ordinary account and the non-resident Nigerian investment account—designed to boost diaspora remittances and attract investment.

“These products offer a secure and efficient way for Nigerians in the diaspora to manage their funds and invest in key sectors back home,” Cardoso said. “It’s a major step toward diversifying Nigeria’s revenue and reserve base.”

He stressed the importance of African countries taking proactive measures to protect their economies from global financial shocks.

This development comes shortly after Ghana announced a similar policy to purchase oil with gold instead of using its US dollar reserves, aiming to ease pressure on its local currency and manage inflation.