In recent days, the Nigerian economy experienced an influx of over $1.5 billion, as reported by the Central Bank of Nigeria (CBN), indicating the effectiveness of its monetary policy initiatives. Hakama Ali, Acting Director of the Corporate Communications Department at the Bank, conveyed this information in a statement issued on Friday,Daily Trust reports.
Ali highlighted that data obtained by the bank revealed that these inflows were a result of concerted efforts to stabilize the foreign exchange market. She further noted that the naira has shown resilience, registering gains in the Autonomous Foreign Exchange market, with a trading rate of N1,309/$1 compared to N1,611/$1 in the second week of March 2024. According to Ali, this recent rate indicates a positive trajectory for the naira.
Assuring stakeholders, Ali affirmed the commitment of the CBN, under the leadership of Yemi Cardoso, to maintain market stability and ensure appropriate pricing of the naira against major global currencies.
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These developments follow the Monetary Policy Committee (MPC) announcement on March 26, 2024, of a two-percent increase in the benchmark rate, from 22.75 percent to 24.75 percent. Governor Olayemi Cardoso, in a post-meeting briefing, reiterated the CBN’s clearance of all verified foreign exchange backlog, signaling an improvement in liquidity in the foreign exchange market.
On March 27, 2024, the Bank conducted the Nigerian Treasury Bills (NTBs) auction, resulting in bids totaling N1.64 trillion, with stop rates of 16.24 percent, 17 percent, and 21.124 percent for the 91-day, 182-day, and 364-day tenors, respectively.
While the decision to raise interest rates prompted concerns among citizens and economic experts, Governor Cardoso clarified that it was aimed at stabilizing the economy by aligning interest rates with current inflation levels. He emphasized the need for collaboration between the monetary and fiscal authorities to achieve sustainable economic stability, acknowledging the role of both sides in addressing economic challenges effectively.
