CBN Announces Over $1.5 Billion Inflow, Naira Strengthens
Good news for the Nigerian economy!
The Central Bank of Nigeria (CBN) reported a significant inflow of over $1.5 billion in recent days. This is seen as a positive outcome of the CBN’s monetary policies aimed at stabilizing the foreign exchange market.
Naira Gains Ground:
The Nigerian Naira (NGN) has shown improvement against the US Dollar (USD) in the Autonomous Foreign Exchange (AFEX) market. As of Friday, the exchange rate stood at N1,309/$1, compared to N1,611/$1 just a few weeks ago in March.
CBN Committed to Stability:
The CBN, under Governor Olayemi Cardoso, remains dedicated to ensuring a stable foreign exchange market and appropriate pricing of the Naira. This follows the harmonization of exchange rates in June 2023, which initially weakened the Naira.
Other Highlights:
- The CBN recently raised the benchmark interest rate to 24.75% in its bid to curb inflation.
- All verified foreign exchange backlogs have been cleared, improving market liquidity.
- The CBN raised the capital base requirement for commercial banks to N500 billion.
While the interest rate hike has caused some concern, Governor Cardoso assures Nigerians that it’s a temporary measure to tackle inflation and stabilize the economy. He emphasizes the importance of collaboration between monetary and fiscal policies for long-term success
