Yemi Cardoso, the Governor of the Central Bank, has announced that the measures implemented by the apex bank to stabilize foreign exchange rates are yielding positive results.
During a briefing with the Joint Senate Committee on Finance, Banking, Insurance, and Financial Institutions on Friday, Cardoso highlighted the effectiveness of these measures in stabilizing foreign exchange rates and reducing the impact of high exchange rates on inflation.
Cardoso revealed that recent CBN interventions have injected $1 billion into the Nigerian market, contributing to the improvement in foreign exchange liquidity.
He expressed satisfaction with the market’s response to the CBN’s policies and emphasized the importance of enhancing US dollar supply to the Nigerian economy to mitigate exchange rate volatility and curb inflation.
To sustain these positive outcomes, Cardoso emphasized the need for Nigeria to moderate its demand for foreign exchange. He reiterated the CBN’s commitment to restoring credibility to the central bank while addressing the underlying issue of high demand for US dollars for both business and personal purposes.
Furthermore, Cardoso assured that inflation is expected to decline this year under the inflation targeting framework, projecting a moderation to 21.1 percent.
