The Central Bank of Nigeria (CBN) has indicated that the naira is likely to maintain its positive momentum in the foreign exchange market. This is due to an influx of dollars into the market, which is part of the central bank’s deliberate efforts to stabilize the market. As a result, the country’s currency has continued to strengthen in the Autonomous Foreign Exchange market.
BDC operators were able to buy US dollars from the CBN at a more favorable rate on Monday, with the dollar selling for N1,251/$ from the apex bank. This was in line with the bank’s commitment made in February to sell $20,000 weekly to BDCs for no more than N1,301.
During a post-meeting press conference, CBN governor Mr. Olayemi Cardoso confirmed that the central bank has cleared all confirmed foreign exchange backlogs and expressed optimism that liquidity would increase in the foreign exchange market. However, he also acknowledged concerns raised by private-sector operators regarding an interest rate hike from 22.75% to 24.75% in March, which they feared could lead to inflation and job losses.
Mr. Cardoso emphasized the need for collaboration between monetary and fiscal policies to ensure sustainable economic growth and noted that a decrease in the foreign exchange rate would help mitigate the impact of interest rate hikes on the economy. He expressed optimism that with both sides working together, they could achieve their goal of stabilizing and moderating
