The Central Bank of Nigeria (CBN) has revealed a significant inflow of over $1.5 billion into the economy in recent days, signaling a positive impact of its monetary policy initiatives.
Mrs. Sidi Ali, the acting Director of the Corporate Communications Department at the CBN, shared this information in a statement on Friday.
Ali emphasized that this influx of funds is a direct result of the bank’s efforts to stabilize the foreign exchange market.
She highlighted the strengthening of the naira in the Autonomous Foreign Exchange market, citing its exchange rate at N1,309/$1, compared to N1,611/$1 just two weeks prior in March 2024.
The official exchange rate between the naira and dollar closed at N1,534/$1 on the official NAFEM market on February 12, 2024, indicating a significant appreciation in the value of the naira.
The recent Monetary Policy Committee meeting, the 294th of its kind, saw the CBN’s decision to raise the interest rate by 200 basis points to 24.75 percent from the previous 22.75 percent.
CBN Governor Olayemi Cardoso reiterated during the post-meeting briefing that the bank had successfully cleared all verified foreign exchange backlogs, with expectations of improved liquidity in the forex market.
The CBN also conducted a Nigerian Treasury Bills auction totaling N1.64 trillion on Wednesday, with stop rates set at 16.24 percent, 17 percent, and 21.124 percent for the 91-day, 182-day, and 364-day tenors, respectively.
While the decision to increase the interest rate sparked concerns among citizens and economic experts, Cardoso defended the move, stating it aimed to stabilize the economy by aligning the interest rate with current inflation levels.
He assured that the increase would not be prolonged, emphasizing the collaborative efforts required between the monetary and fiscal sides to achieve sustainable economic stability.
Mrs. Ali reaffirmed the CBN’s commitment under Cardoso’s leadership to ensure market stability and appropriate pricing of the naira against other major currencies globally.
As Thursday’s exchange rate indicates a positive trajectory for the naira, stakeholders remain vigilant as efforts continue to steer Nigeria’s economy towards sustainable growth and stability.
