CBN Reports Over $1.5bn Forex Inflow

Abuja, Nigeria– Following the recent Monetary Policy Committee (MPC) meeting, the Central Bank of Nigeria (CBN) has announced an influx of $1.5 billion in foreign exchange into the Nigerian economy.

According to the CBN, this positive development is a direct result of its ongoing monetary policy efforts.

Mrs. Hakama Sidi Ali, Acting Director of Corporate Communications for the CBN, stated that data shows that the inflows stemmed from the CBN’s initiatives to stabilize the foreign exchange market.

This stabilization is reflected in the Naira’s appreciation within the Autonomous Foreign Exchange (AFEX) market. As of Thursday, March 28th, 2024, the Naira traded at N1,309/$1, a significant improvement compared to N1,611/$1 in the second week of March.

While acknowledging the positive trend, Mrs. Ali emphasized the CBN’s unwavering commitment to maintaining exchange rate stability and ensuring the Naira reflects its appropriate value against other major global currencies.

This development she noted “aligns with Governor Olayemi Cardoso’s recent pronouncements following the Monetary Policy Committee (MPC) meeting on March 26th, 2024”.

The MPC meeting resulted in a two-percent increase in the benchmark interest rate, rising from 22.75% to 24.75%.

Governor Cardoso also confirmed the clearance of all verified foreign exchange backlogs, a move intended to improve liquidity within the market.

Meanwhile, on Wednesday, March 27th, the CBN conducted a Nigerian Treasury Bills (NTBs) auction of N1.64 trillion, “at stop rates of 16.24 percent, 17 percent, and 21.124 percent for the 91-day, 182-day, and 364-day tenors, respectively”.

The CBN’s recent actions and the reported foreign exchange inflows suggest a multi-pronged approach to address market concerns and foster stability. While the Naira’s appreciation is a positive sign, the CBN acknowledges the need for continued vigilance and a commitment to sound monetary policies.