# Nigeria economic and foreign exchange reforms > Live situation record from CLSTR: https://clstr.news/situations/nigeria-economic-and-foreign-exchange-reforms > Updated: 2026-09-22T21:20:39.000Z. Sources: 5. Developments: 2. The Central Bank of Nigeria (CBN) has implemented a series of monetary and structural reforms to address long-standing economic distortions. Under Governor Olayemi Cardoso, the bank has worked to unify multiple exchange rate windows and clear a $7 billion foreign exchange backlog. These efforts aim to move toward a transparent market to eliminate arbitrage and restore financial stability. Research indicates that previous exchange rate volatility and multiple regimes have significantly hindered growth, with one study noting currency fluctuations have been a drag on GDP for 25 years. Governor Cardoso stated that distortions from the dysfunctional exchange rate market cost the country approximately 3 per cent of its GDP. To support these reforms, the CBN has overseen a banking sector recapitalisation exercise and utilized aggressive monetary tightening, including an 850 basis point interest rate hike over nine months. As of July 2026, these measures contributed to reported external reserves reaching $52.73 billion. ## Timeline ### 2026-09-22: Nigeria's exchange rate volatility and distortions impact GDP Currency volatility and multiple exchange rate regimes have significantly impacted Nigeria's GDP, with CBN Governor Olayemi Cardoso noting that FX distortions cost the economy more than fuel subsidies. 2 sources. https://clstr.news/cluster/nigerias-exchange-rate-volatility-and-distortions-impact-gdp ### 2026-09-22: Central Bank of Nigeria reforms drive economic stability Central Bank of Nigeria Governor Olayemi Cardoso has implemented reforms including FX market unification, banking sector recapitalisation, and aggressive interest rate hikes to stabilize the economy. 4 sources. https://clstr.news/cluster/central-bank-of-nigeria-reforms-drive-economic-stability --- Cite as: Nigeria economic and foreign exchange reforms. CLSTR, https://clstr.news/situations/nigeria-economic-and-foreign-exchange-reforms