In a recent briefing before the Joint Senate Committee on Finance, Banking, Insurance, and Financial Institutions, Central Bank Governor Yemi Cardoso shared promising outcomes from the apex bank’s initiatives to stabilize foreign exchange rates.
Cardoso highlighted that the measures implemented by the Central Bank of Nigeria (CBN) are already demonstrating success in stabilizing foreign exchange rates, aiming to minimize the inflationary impact caused by high exchange rates.
During the committee briefing on Friday, Cardoso revealed that the CBN interventions have resulted in an influx of $1 billion into the Nigerian market over the past few days, a tangible sign of the effectiveness of their policies.
“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,” stated Cardoso.
Emphasizing the importance of sustainable measures, Cardoso urged Nigeria to moderate its demands for foreign exchange.
He acknowledged the CBN’s efforts to restore credibility to the central bank and addressed the core issue affecting the exchange rate—the demand for US dollars for both business and personal needs.
Despite the challenges, Cardoso assured the committee that inflation is expected to decrease this year, following the inflation targeting framework and moderating to 21.1 percent.
The committee’s summoning of the CBN Governor on January 31 reflects the deep-seated concerns about the economy and the sharp decline of the naira in the foreign exchange market.
Senators are seeking explanations from the CBN regarding the myriad economic challenges facing the country, highlighting the pivotal role of the central bank in addressing these issues.
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