AGS NEWS – The Central Bank of Nigeria (CBN) has revealed a significant inflow of over $1.5 billion into the economy in recent days, signaling a positive impact from its monetary policy measures.

Mrs. Sidi Ali, the acting Director of the Corporate Communications Department at the CBN, conveyed this information in a statement on Friday.

According to Ali, the influx is attributed to the bank’s efforts to stabilize the foreign exchange market.

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She further highlighted that data available to the bank indicates a strengthening of the naira in the Autonomous Foreign Exchange market, with the currency trading at N1,309 per dollar compared to N1,611 per dollar in the second week of March 2024.

Previously, the exchange rate between the naira and dollar closed at N1,534 per dollar on the official NAFEM market on Monday, February 12, 2024, indicating a significant appreciation of the naira’s value.

The recent decision by the CBN to raise interest rates during its 294th Monetary Policy Committee meeting by 200 points to 24.75% from the previous 22.75% has sparked concerns among citizens and economic experts.

However, Governor Olayemi Cardoso reiterated during the post-meeting briefing that the apex bank had addressed all verified foreign exchange backlogs, emphasizing the anticipated improvement in liquidity in the forex market.

The CBN conducted a Nigerian Treasury Bills auction of N1.64 trillion on Wednesday, with stop rates of 16.24%, 17%, and 21.124% for the 91-day, 182-day, and 364-day tenors, respectively.

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Governor Cardoso defended the decision to increase interest rates, stating it aims to stabilize the economy by aligning interest rates with current inflation rates in the country.

He reassured that the increase would not be prolonged, emphasizing collaboration with the fiscal side to ensure economic sustainability.