The CBN also claimed that the recent development is due to ongoing monetary policy efforts in a statement issued by Mrs. Hakama Sidi Ali, Acting Director of Corporate Communications for the CBN.
The Central Bank of Nigeria (CBN) on Friday announced that the Nigerian economy has witnessed $1.5billion foreign exchange inflow into the country barely two days after the Monetary Policy Committee (MPC) meeting.
The implication of the recent development is that there is a high tendency of more stability in the country’s foreign exchange market.
The CBN also claimed that the recent development is due to ongoing monetary policy efforts in a statement issued by Mrs. Hakama Sidi Ali, Acting Director of Corporate Communications for the CBN.
This stabilisation is evident in the Naira's appreciation on the Autonomous Foreign Exchange (AFEX) market. As of Thursday, March 28th, 2024, the Naira traded at N1,309/$1, a major gain from N1,611/$1 in the second week of March.
While noting the encouraging trend, Mrs. Ali emphasised the CBN's unshakable commitment to preserving exchange rate stability and safeguarding the Naira's proper value against other major world currencies.
This development she noted “aligns with Governor Olayemi Cardoso’s recent pronouncements following the Monetary Policy Committee (MPC) meeting on March 26th, 2024."
SaharaReporters had also reported how Governor Cardoso confirmed the clearance of all verified foreign exchange backlogs to improve liquidity within the FX market.
The apex bank on Wednesday conducted a Nigerian Treasury Bills (NTBs) auction of N1.64 trillion, “at stop rates of 16.24 percent, 17 percent, and 21.124 percent for the 91-day, 182-day, and 364-day tenors, respectively”.
The CBN's recent steps, together with reported foreign exchange inflows, indicate a multifaceted effort to addressing market concerns and promoting stability. While the Naira's appreciation is an encouraging indicator, the CBN recognises the importance of continuing monitoring and adherence to prudent monetary policy.