Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), announced that Nigeria recorded a foreign exchange inflow of about $24 billion in the first quarter of 2024, a 50% increase compared to previous quarters up to 2021. During an interview with Bloomberg TV in London, Cardoso highlighted the success of monetary policy measures in reducing naira volatility and inflationary pressure, noting a current inflation rate of 33.69%. He emphasized the vigilance of the Monetary Policy Committee (MPC) in monitoring and moderating inflation rates, which have shown a month-on-month deceleration.
Cardoso expressed optimism about the future, stating that the MPC is committed to controlling inflation and adjusting interest rates based on data. He refrained from speculating on the end of the tightening cycle that began in May 2022, emphasizing the MPC’s data-driven approach. He also noted the relative stability in the exchange market and the positive impact of the bank’s measures on naira stabilization and liquidity growth.
Additionally, Cardoso revealed that the CBN has established a committee to increase the inflow of diaspora funds into the official foreign exchange market, aiming to double the foreign exchange inflow from international monetary operations. He acknowledged the significant role of Nigerian diasporans in remitting money and highlighted the committee’s early successes in boosting liquidity. Cardoso believes these efforts will help close the gap in foreign exchange availability and further stabilize the market.
