The Nigerian economy recorded a $1.5 billion inflow within a week after the Central Bank of Nigeria (CBN) raised the Monetary Policy Rate (MPR) by 200 basis points to 24.75 percent on Tuesday.
Mrs. Hakama Sidi Ali, the acting director of the bank’s corporate communications department, stated in Abuja yesterday that the development was a sign that the CBN’s monetary policy initiatives were having a beneficial effect.
CBN Policy Boosting Cash Inflow
She pointed out that information at the bank’s disposal suggested the inflows were the outcome of the bank’s deliberate efforts to stabilise the foreign currency market.
Jeerymusa.com reports that in the autonomous foreign exchange market, the naira, according to her, has also been making gains; it was trading at N1,309/$1 as opposed to N1,611/$1 in the second week of March 2024.
Although she acknowledged that the rate on Thursday showed the Naira was moving in the right direction, she gave her word that the Cardoso-led CBN would continue to be dedicated to making sure the market remained stable and the Naira was priced appropriately against other major currencies worldwide.
Remember that on Tuesday, the Monetary Policy Committee (MPC) of the CBN declared a two-percent hike in its benchmark rate, from 22.75% to 24.75%? The Governor, Mr. Olayemi Cardoso emphasised that the CBN had cleared all verified foreign exchange backlogs at his post-meeting briefing, highlighting the fact that the foreign currency market’s liquidity would improve.
On Wednesday, March 27, 2024, the CBN held the N1.64 trillion Nigerian Treasury Bills (NTBs) auction, with stop rates of 16.24%, 17%, and 21.124% for the 91-day, 182-day, and 364-day tenors, respectively.