The Nigerian economy witnessed an impressive inflow of $1.5 billion within just one week following the Central Bank of Nigeria‘s bold move to elevate the Monetary Policy Rate (MPR) by a substantial 200 basis points, setting it at 24.75 per cent on Tuesday.
The Acting Director of the Corporate Communications Department at the Bank, Mrs Hakama Sidi Ali, stated during a briefing in Abuja yesterday that this surge in inflow serves as a testament to the efficacy of the CBN’s monetary policy initiatives.
She further explained that meticulous data analysis conducted by the Bank revealed that this influx stemmed from a concerted effort to stabilize the foreign exchange market.
Mrs Hakama Sidi Ali pointed out that the Nigerian Naira has demonstrated resilience by consistently registering gains in the Autonomous Foreign Exchange market.
As evidence, she cited its recent trading rate of N1,309 per dollar, a notable improvement from the N1,611 recorded in the second week of March 2024.
Expressing optimism about the trajectory of the Naira’s value, she assured stakeholders that under the leadership of Governor Olayemi Cardoso, the CBN remains steadfast in its commitment to fostering market stability and ensuring the Naira is appropriately valued against global currencies.
This development follows the recent decision by the CBN’s Monetary Policy Committee (MPC) to raise the benchmark rate by two percentage points from 22.75% to 24.75%, as announced earlier in the week.
Governor Olayemi Cardoso reiterated during the post-meeting briefing that the CBN has successfully addressed all verified foreign exchange backlogs, signalling an imminent improvement in liquidity within the foreign exchange market.
In parallel efforts to manage fiscal dynamics, the CBN conducted a successful auction of Nigerian Treasury Bills (NTBs) totalling N1.64 trillion on Wednesday, March 27, 2024, achieving stop rates of 16.24%, 17%, and 21.124% for the 91-day, 182-day, and 364-day tenors, respectively.
