The Central Bank of Nigeria (CBN) has reported a significant inflow of over $1.5 billion into the economy in recent days, signaling the positive impact of its monetary policy interventions.
According to Mrs. Sidi Ali, the acting Director of the Corporate Communications Department of the CBN, this influx of funds is a result of the bank’s efforts to stabilize the foreign exchange market.
The statement, released to The PUNCH on Friday, highlighted the strengthening of the naira in the Autonomous Foreign Exchange market, where it traded at N1,309/$1 compared to N1,611/$1 in the second week of March 2024.
The official exchange rate between the naira and dollar closed at N1,534/$1 on the official NAFEM market on Monday, February 12, 2024, indicating a considerable appreciation in the value of the naira.
The CBN recently conducted a Nigerian Treasury Bills auction worth N1.64 trillion, with stop rates of 16.24 per cent, 17 per cent, and 21.124 per cent for the 91-day, 182-day, and 364-day tenors, respectively.
Related News: CBN raises interest rate to 24.75%
Following the CBN’s decision to increase the interest rate by 200 basis points to 24.75 per cent during its 294th Monetary Policy Committee meeting, concerns were raised by citizens and economic experts.
However, CBN Governor Olayemi Cardoso emphasized that the decision aimed to stabilize the economy by aligning the interest rate with current inflation levels.
Cardoso assured that the increase would not be prolonged and stressed the importance of collaboration with the fiscal side to achieve sustainable economic stability.
Mrs. Sidi Ali reiterated the commitment of the CBN, under the leadership of Governor Cardoso, to ensure market stability and appropriate pricing of the naira against major currencies globally.
She expressed confidence that the recent exchange rate trends indicate positive progress for the Nigerian economy.
