The acting Governor of the Central Bank of Nigeria, Folashodun Shonubi, has expressed the bank’s commitment to tackle the mounting demand pressure on the country’s exchange rate as the naira continues to depreciate against the dollar.

Shonubi made these assurances in response to questions from journalists after the Monetary Policy Committee’s two-day meeting that concluded in Abuja.

Within a week, the naira fell from 820/$ to 870/$ against the dollar in the parallel market.

Shonubi emphasized that the market needs to find its equilibrium, stating that there is pent-up demand that the market is struggling to meet.

The bank has already begun intervening, and it intends to continue until the market stabilizes.

Announcing the MPC’s outcome, Shonubi revealed that the majority of members voted to raise the Monetary Policy Rate (MPR).

The MPC decided to raise the MPR by 25 basis points, bringing it to 18.75 per cent, in an effort to offset the moderate increase in headline inflation.

Members considered the impact of inflation on various macroeconomic variables, including its potential dampening effect on output growth.