The Central Bank of Nigeria (CBN) has announced a significant inflow of over $1.5 billion into the country’s economy recently, signaling a positive impact of its monetary policy measures.
According to Mrs. Hakama Ali, the acting director of the CBN’s corporate communications department, this influx of funds is a testament to the effectiveness of the bank’s efforts to stabilize the foreign exchange market.
Mrs. Ali noted that data available to the CBN indicates a strengthening of the Naira, with the currency trading at N1,309/$1 in the Autonomous Foreign Exchange market. This marks a notable improvement from N1,611/$1 recorded in the second week of March 2024.
The CBN remains optimistic about the trajectory of the Naira, citing Thursday’s exchange rate as evidence of progress. Mrs. Ali assured that the CBN, under the leadership of Olayemi Cardoso, is committed to maintaining market stability and ensuring appropriate pricing of the Naira against major global currencies.
The recent announcement follows the CBN’s Monetary Policy Committee (MPC) decision to raise its benchmark rate by two percent, from 22.75 percent to 24.75 percent, on March 26, 2024.
Experts explain that this move is aimed at curbing inflation, which reached a peak of 31.7 percent in February. Additionally, it aims to instill confidence in investors by fostering a conducive and sustainable economic environment.
The decision to increase the benchmark rate by 200 basis points within a month underscores the CBN’s proactive stance in addressing economic challenges and steering the Nigerian economy towards stability and growth.
