The Central Bank of Nigeria has announced a significant inflow of over $1.5 billion into the economy, signaling a positive impact from its monetary policy measures.
According to Mrs. Sidi Ali, the acting Director of the Corporate Communications Department at the bank, the influx is a result of efforts to stabilize the foreign exchange market.
Additionally, the Naira has shown resilience, with gains in the Autonomous Foreign Exchange market, trading at N1,309/$1 compared to N1,611/$1 earlier in March 2024.
The recent Monetary Policy Committee meeting, where the CBN increased the interest rate to 24.75%, aimed at aligning with current inflation rates, was met with mixed reactions. However, Governor Olayemi Cardoso reiterated the bank’s commitment to stabilizing the economy and clearing foreign exchange backlogs.
Despite concerns, the decision to raise interest rates is viewed as a short-term measure to bring stability, especially with the moderation of the exchange rate. Collaboration between monetary and fiscal policies is crucial for sustaining this stability.
Mrs. Ali affirmed the CBN’s dedication to market stability and ensuring the Naira’s appropriate valuation against other major currencies.