In an appearance before the Joint Senate Committee on Finance, Banking, Insurance, and Financial Institutions on Friday, February 9, CBN Governor Yemi Cardoso stated that the steps the central bank has taken to far to stabilise foreign exchange rates have begun to show promising outcomes.
Given their close relationship, Cardoso said that the measures will help stabilise foreign exchange rates and reduce the distortion that high exchange rates have on inflation.
According to Cardoso, the CBN’s operations have brought $1 billion into the Nigerian market in recent days.
“We have already begun to see shifts in the positive direction. Indeed they (CBN measures) have already started yielding early results with significant interest from foreign portfolio investors which was a concern. That has already begun to supply the much-needed foreign exchange to the economy.
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“For example, upward of the past few days, we have had over $1 billion that has come into the market, and this quite frankly has answered the question of if our policies are working,” Cardoso said.
He continued by saying that boosting the flow of US dollars into the Nigerian economy has a big chance of reducing exchange rate volatility, which will in turn slow down inflation.
The governor of the CBN further guaranteed that, by adhering to the inflation targeting framework, inflation is anticipated to decrease this year and moderate to 21.1%.
A Gentle Reminder: Every obstacle is a stepping stone, every morning; a chance to go again, and those little steps take you closer to your dream.
Nnamdi Okoli
