Causes Behind Nigeria’s Economy Experiencing Inflows Surpassing $1.5 Billion Within Days – CBN

The Central Bank of Nigeria (CBN) has announced that the Nigerian economy has received a total inflow of more than $1.5 billion in recent days. This positive development is seen as a testament to the effectiveness of the CBN’s monetary policy efforts.

Hakama Ali, the Acting Director of the CBN’s Corporate Communications Department, stated on Thursday that the inflows were a result of a concerted effort to stabilize the foreign exchange market. She also highlighted that the naira has been experiencing gains in the Autonomous Foreign Exchange market, with a trading rate of N1,309/$1 compared to N1,611/$1 in the second week of March 2024.

Ali emphasized that this positive trend indicates that the naira is moving in the right direction. She further assured that the CBN, under the leadership of Yemi Cardoso, remains committed to ensuring market stability and appropriate pricing of the naira against other major currencies worldwide.

This development follows the CBN’s announcement of a two-percent increase in its benchmark rate during the Monetary Policy Committee (MPC) meeting on March 26, 2024. Governor Olayemi Cardoso reiterated that the CBN has successfully cleared all verified foreign exchange backlog, which will contribute to improved liquidity in the foreign exchange market.

Furthermore, the CBN conducted a Nigerian Treasury Bills (NTBs) auction on March 27, 2024, with a total value of N1.64 trillion. The stop rates for the 91-day, 182-day, and 364-day tenors were set at 16.24 percent, 17 percent, and 21.124 percent, respectively.