In recent news, the Acting Director of the Corporate Communications Department at the apex bank made a statement via The Punch that there has been a significant inflow into the foreign exchange market. This influx is a result of the bank’s strategic plan to stabilize the foreign exchange market.
On Monday, the Central Bank of Nigeria indicated that the naira may continue its positive trend as currency traders were sold US dollars at a more favorable rate. The Bureau De Change (BDC) operators obtained the dollar for N1,251/$ from the apex bank, in accordance with the bank’s commitment in February to sell $20,000 weekly to BDCs for no more than N1,301.
In March, the Central Bank increased the country’s interest rate from 22.75% to 24.75%, which could potentially impact inflation and lead to job cuts according to private-sector operators. However, Mr. Olayemi Cardoso, governor of central bank acknowledged this concern but emphasized that with decrease in foreign exchange rate it could help moderate overall impact and expressed optimism that exchange rate would stabilize at sustainable level through collaboration with fiscal side highlighting need for both monetary and fiscal measures to address economic challenges.
Furthermore, during a post-meeting conference, Mr. Olayemi Cardoso confirmed that all confirmed foreign exchange backlogs have been addressed by central bank indicating increase in liquidity in foreign exchange market.
It is important to note that these developments will have implications on various sectors and stakeholders in Nigeria’s economy and it is important for them to closely monitor these changes and adjust their strategies accordingly.
Overall, these developments indicate stability in Nigeria’s currency market but still more needs to be done through collaboration between monetary and fiscal policies to achieve sustainable economic growth.
