Nigeria Nigeria's Economy Receives Boost: CBN Announces $1.5bn Influx

The Central Bank of Nigeria (CBN) has reported a substantial inflow of over $1.5 billion in recent days, signaling a positive outlook for the nation's monetary policy initiatives. The announcement, made by the Bank's Acting Director of the Corporate Communications Department, Hakama Ali, underscores the effectiveness of the CBN's efforts to stabilize the foreign exchange market.

Ali emphasized that the inflows were a direct result of concerted measures aimed at bolstering market stability, leading to significant gains for the naira in the Autonomous Foreign Exchange market. Notably, the naira's exchange rate saw a notable improvement, trading at N1,309/$1, a significant leap from N1,611/$1 recorded in the second week of March 2024. This upward trend in the naira's value signifies a positive trajectory, indicating that the currency is moving in the right direction.

Assuring stakeholders of the CBN's unwavering commitment to market stability and ensuring appropriate pricing of the naira against major global currencies, Ali reiterated the leadership's dedication under the stewardship of Governor Olayemi Cardoso. The recent decision by the Monetary Policy Committee (MPC) to increase the benchmark rate by two percent, from 22.75 percent to 24.75 percent, further underscores the Bank's proactive approach to maintaining economic equilibrium.

Governor Cardoso, in his post-MPC meeting briefing, reaffirmed the CBN's efforts to address foreign exchange backlog, emphasizing the imminent improvement in market liquidity. The recent Nigerian Treasury Bills (NTBs) auction, totaling N1.64 trillion on March 27, 2024, witnessed competitive stop rates of 16.24 percent, 17 percent, and 21.124 percent for the 91-day, 182-day, and 364-day tenors, respectively.

As Nigeria navigates through economic challenges, the CBN's report of significant inflows and proactive monetary policy measures inject optimism into the country's economic prospects.