…volume Of transactions in the exchange market hits $800m
Amid the rising prices of foodstuff and other commodities in the market, the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has assured Nigerians that the nation’s inflation rate will drop.
Nigeria’s inflation has been on the rise for 11 consecutive months, reaching a new high in December 2023, according to the National Bureau of Statistics (NBS).
The annual inflation rate rose to 28.92 percent in December from 28.20 percent in November. The headline inflation rate showed an increase of 0.72 percent points when compared to the November 2023 headline inflation rate.
He stated this while addressing members of the House of Representatives at the sectoral debate on the economy.
But briefing lawmakers at the sectoral debate on the economy before the House of Representatives, the CBN governor specifically said inflation will reduce to 21%.
Giving an outlook for 2024, he said: “Inflationary pressures are expected to decline in 2024 due to the CBN’s inflationary targeting policy aiming to rein in inflation to 21.4 percent, aided by improved agricultural productivity and easy global supply chain pressures.
“The Nigerian foreign exchange market is currently facing increased demand pressures causing a continuous decrease in the value of naira.”
Cardoso is one of the top government officials who was summoned by the lower chamber over the state of the economy as well as the free fall of the naira recently.
Others quizzed were the Minister of Finance and Coordinating Minister of the Economy, Wale Edun; Minister of Budget and National Planning, Abubakar Bagudu and the Executive Chairman of the Federal Inland Revenue Service (FIRS) Zacch Adedeji.
Cardoso explained that the apex bank has unveiled measures to address the persistent decline in the value of the naira.
According to him, the economy must earn through export to boost the naira He said the CBN plans to instill Confidence through stability in consumer prices and the foreign exchange market.
He believes that the policy measures of the bank are expected to impact positively on inflation.
Talking further on the situation of foreign exchange in the country, the Governor of the Central Bank of Nigeria (CBN), said that for the first time in a long while, Nigeria’s volume of transactions in the exchange market rose to $800 million.
He stated this while addressing members of the House of Representatives at the sectoral debate on the economy.
“We are not a turning point and the bold reforms on the way across different segments of the economy, though initially challenging, are aimed at addressing these challenges sustainably,” he said on Tuesday.
“I am confident that positive outcomes are already emerging and will become more apparent in the near future. The dedicated and relentless efforts being made are certain to bring about significant and positive changes for our economy.
“On that note, I am happy to inform you that as of yesterday, the volume of transactions on our market was over $800 million. This is the first time in many years that it has achieved this level.”
According to Cardoso, recent reports from international rating agencies like Fitch, Moldes, Standard, and Poor’s and commendations from the World Bank have reflected a positive trajectory with an upgrade to Nigeria’s rating from stable to positive.
Acknowledging the high cost of living and inflation that is biting hard in the country, Cardoso stated that the Federal Government is working with the apex bank to address the concerns of Nigerians as well as the lawmakers.
He explained that despite the positive evaluation of Nigeria’s economy, concerns raised by the lawmakers regarding the currency rate remain.
“I acknowledge that despite these commendations, the concerns regarding the cost of living and currency rate remain. This is a major topic of concern in our villages, towns, and cities.
“The urgency of the matter is not lost on us at the Central Bank and I want to assure you that we are working tirelessly with colleagues from across government including the leadership of this House to bring lasting solutions,” he stated.
