Nigeria’s Economy Witnesses Inflow of Over $1.5 Billion, Reports Central Bank

In recent days, Nigeria’s economy has experienced a significant inflow of over $1.5 billion, as confirmed by the Central Bank of Nigeria (CBN). This substantial influx, according to the CBN, underscores the efficacy of its monetary policy measures.

Hakama Ali, the Acting Director of the CBN’s Corporate Communications Department, highlighted this achievement on Thursday, citing data indicating a concerted effort to stabilize the foreign exchange market as the driving force behind the inflows.

One notable outcome of these efforts is the strengthening of the naira in the Autonomous Foreign Exchange market, where it traded at N1,309/$1 compared to N1,611/$1 in the second week of March 2024. Ali expressed optimism about the direction of the naira, emphasizing the CBN’s commitment, under the leadership of Yemi Cardoso, to ensuring market stability and appropriate currency pricing globally.

This positive development follows the CBN Monetary Policy Committee’s decision to increase its benchmark rate by two percent, from 22.75 percent to 24.75 percent, on March 26, 2024. Governor Olayemi Cardoso reiterated the CBN’s success in clearing all verified foreign exchange backlogs during the post-meeting briefing, indicating an improvement in liquidity within the foreign exchange market.

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