CBN Makes Another Huge Claims on Foreign Exchange Inflow, Triggers Reactions

Nigerians have been engulfed with mixed feelings following the announcement made by the Central Bank of Nigeria (CBN) that the Nigerian economy has witnessed a $1 1.5 billion foreign exchange inflow into the country barely two days after the Monetary Policy Committee (MPC) meeting.

CBN made this known on Friday, which poses a question on the possible implication of the recent development over a high tendency of more stability in the country’s foreign exchange market.

According to SaharaReporters, 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.

It is further availed that this stabilization is evident in the Naira’s appreciation of 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.

Mrs. Ali who also noted the encouraging trend, 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 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 address market concerns and promote stability. While the Naira’s appreciation is an encouraging indicator, the CBN recognizes the importance of continuing monitoring and adherence to prudent monetary policy

SaharaReporters