The Central Bank of Nigeria (CBN) revealed a significant boost to the country’s foreign exchange reserves with an inflow of $1.5 billion.
This development comes just 48 hours after the conclusion of the Monetary Policy Committee (MPC) meeting, signaling a positive shift in Nigeria’s foreign exchange market.
According to Mrs. Hakama Sidi Ali, the Acting Director of Corporate Communications at the CBN, this influx of foreign exchange is a direct result of the central bank’s proactive measures aimed at stabilizing the foreign exchange market. The data indicates a notable improvement in the Naira’s performance in the Autonomous Foreign Exchange (AFEX) market, with the currency trading at N1,309/$1 on Thursday, March 28, 2024, compared to N1,611/$1 earlier in March.
Mrs. Ali reiterated the CBN’s steadfast commitment to maintaining exchange rate stability and ensuring the Naira reflects its true value against major global currencies, aligning with Governor Olayemi Cardoso’s recent statements following the MPC meeting.
Governor Cardoso announced a 2 per cent increase in the benchmark interest rate, now standing at 24.75%, as a measure to further strengthen monetary policy. Additionally, the clearance of all verified foreign exchange backlogs was confirmed to enhance liquidity within the market.
Furthermore, on Wednesday, March 27, the CBN conducted a successful Nigerian Treasury Bills (NTBs) auction worth N1.64 trillion, with stop rates ranging from 16.24 per cent to 21.124 per cent for various tenors.
These recent actions by the CBN, combined with the reported foreign exchange inflows, demonstrate a comprehensive approach to addressing market concerns and fostering stability. While the appreciation of the Naira is encouraging, the CBN emphasizes the importance of ongoing vigilance and the implementation of sound monetary policies to sustain these positive trends.
