CBN
Nigerian Economy Sees $1.5 Billion Inflow in a Week Following CBN’s Interest Rate Hike
After the Central Bank of Nigeria (CBN) increased the Monetary Policy Rate (MPR) by 200 basis points to 24.75 percent, the Nigerian economy welcomed a $1.5 billion inflow within a week. Mrs. Hakama Sidi Ali, the Bank’s Acting Director of Corporate Communications Department, disclosed this development in Abuja, emphasizing that it reflects the positive impact of CBN’s monetary policy measures. She attributed the inflows to the Bank’s concerted efforts to stabilize the foreign exchange market.
Additionally, Ali highlighted that the Naira has continued to strengthen in the Autonomous Foreign Exchange market, trading at N1,309/$1 compared to N1,611/$1 in the second week of March 2024. She expressed optimism about the Naira’s trajectory, affirming the CBN’s commitment, under the leadership of Governor Olayemi Cardoso, to ensure market stability and appropriate currency pricing against global counterparts.
Notably, the CBN’s Monetary Policy Committee (MPC) announced a two-percent increase in its benchmark rate during its recent meeting. Governor Cardoso reiterated the CBN’s effort to clear all verified foreign exchange backlog, anticipating improved liquidity in the foreign exchange market.
Furthermore, on Wednesday, March 27, 2024, the CBN conducted the Nigerian Treasury Bills (NTBs) auction totaling N1.64 trillion, with stop rates set at 16.24%, 17%, and 21.124% for the 91-day, 182-day, and 364-day tenors, respectively.
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