The Central Bank of Nigeria (CBN) has reported a significant foreign exchange inflow of $1.5 billion into the country in March.
This development comes just 48 hours after the Monetary Policy Committee (MPC) meeting.
The inflow is seen as a positive indicator of the improving status of the foreign exchange market in Nigeria, thanks to ongoing monetary policy efforts.
According to Mrs. Hakama Sidi Ali, the Acting Director of Corporate Communications at the CBN, these inflows are a result of the bank’s initiatives aimed at stabilizing the foreign exchange market.
Recent days have witnessed an appreciable recovery of the Naira in the Autonomous Foreign Exchange (AFEX) market.
For instance, on Thursday, March 28, 2024, the Naira traded at N1,309/$1, a significant improvement compared to N1,611/$1 in the second week of March.
Mrs. Ali emphasized the CBN’s unwavering commitment to maintaining exchange rate stability and ensuring that the Naira reflects its appropriate value against other major global currencies.
This commitment aligns with Governor Olayemi Cardoso’s recent pronouncements following the MPC meeting on March 26, 2024.
As part of its efforts, the CBN also cleared all verified foreign exchange backlogs, aiming to improve liquidity within the market.
Additionally, a Nigerian Treasury Bills (NTBs) auction was conducted on Wednesday, March 27, with stop rates of 16.24%, 17%, and 21.124% for the 91-day, 182-day, and 364-day tenors, respectively.
While the Naira’s appreciation is a positive sign, the CBN remains vigilant and committed to sound monetary policies to foster stability in the market.
