*Dr. Olayemi Cardoso, Governor of the Central Bank of Nigeria, in a recent interview, affirms highlights the positive impact of the Bank鈥檚 monetary policy tools, in regard to recent challenges facing the Foreign Exchange market, assuring consumers the measures are 鈥榖eginning to bring about results as liquidity will increase in our market鈥�

Isola Moses | 绿帽献妻

The Federal Government has assured Nigerians of increased liquidity in the Nigerian economy, as the country recorded total of about $24 billion Foreign Exchange (Forex) inflow First Quarter (Q1) 2024.

绿帽献妻 reports Dr. Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), stated this in a recent interview with Bloomberg in London, United Kingdom (UK).

Cardoso made this disclosure during an interview with Bloomberg TV on Tuesday in London.

He noted that the current inflow is about 50 percent above the inflows recorded in previous quarters up to 2021 in the economy.

The CBN Chief also affirmed the days of excessive Naira volatility were over, while highlighting the positive impact of the monetary policy tools of the banking sector regulator to tackle the challenges facing the Forex market.

According to him, the inflationary pressure has started dropping as a result of the Bank鈥檚 policy measures, which aim to reduce the current inflation rate of 33.69 per cent.

Cardoso as well assured that the Monetary Policy Committee (MPC) members remained vigilant in monitoring inflation trends and ensuring a moderation of inflation numbers.

鈥淭he MPC has been very clear in stating that they see inflation as a major impediment to the future of Nigeria and would do everything possible to ensure that they keep inflation in check and bring it down as reasonably as they can.

鈥淚 don鈥檛 see that changing. So far from what we鈥檙e seeing, there鈥檚 a deceleration in inflation rates, which is good news,鈥� he stated.

The CBN Governor said: 鈥淎nd my intuition is that with the measures that have been taken in the recent past, and with the confidence of the MPC members to watch the interest rate trajectory very closely. We should see a continuation of the moderation in the inflation rate.鈥�

He also explained: 鈥淎gain, let鈥檚 watch the numbers but my intuition is that the MPC is determined to ensure that they put inflation in control.

鈥淒ata will direct whether they see further hikes or not. The MPC has been very clear in stating that they see inflation as a major impediment to the future of Nigeria, and they will do everything possible to ensure that they keep inflation in check and bring it down as reasonably as they can and I don鈥檛 see that changing.鈥�

Cardoso stated: 鈥淟et鈥檚 not forget that the MPC is an independent-minded group of people who deal with data.

鈥淪o, what I will say is that depending on what data they see at a particular point in time will direct how they see the hikes or not.鈥�

The worst is over for Naira fluctuations, assures Cardoso

As regards the relative stability being enjoyed in the Forex market, Cardoso noted the Central Bank of Nigeria was relatively pleased with the progress it had recorded in stabilising the Naira.

The Bank will encourage measures to drive down the rates, as the worst was over for the Naira鈥檚 fluctuations, said he.

Cardoso鈥檚 optimism stems from the CBN鈥檚 multi-pronged approach to stabilising the Naira before the recent interventions, speculation and manipulation in the Forex forward contract market were contributing to Naira volatility.

Cardoso stated: 鈥淲e do believe that we have more or less seen the worst in terms of volatility. You recall that months ago when I assumed office in September of 2023, we did have a crisis on our hands and the Naira was, you know headed in a direction that everybody didn鈥檛 like.

鈥淭here was a lot of fear, panic, loss of confidence and trust. And it was vitally important that we addressed those issues of confidence and trust. We are relatively pleased with how far we have gotten up to now.鈥�

He said: 鈥淚n the past two, or three weeks, after a period of volatility, we have seen a lot of stability in the market and there has hardly been any movement in the currency.鈥�

The CBN Chief also noted: 鈥淥ne of which is the fact that more confidence was going to come back into the market. A lot of inflows have come back because there鈥檚 very little liquidity at the time.

鈥淚n terms of liquidity, especially on the Foreign Exchange side, we have seen an increase. The first quarter of this year has resulted in a total inflow of about $24bn. Now, this is almost about 40 to 50 percent more than the quarters up to about 2021.鈥�

According to him, the increase in Forex liquidity in the First Quarter (Q1) of 2024 is the highest in any quarter since 2021.

Cardoso added: 鈥淭he tools are having a positive impact. So we believe that continuing on this trajectory, we believe that liquidity will continue to grow.鈥�

鈥淎gain, we are confident that with these kinds of measurements, liquidity will increase in our market.鈥�

Kindly Share This Story