Various monetary policies introduced by the Central Bank of Nigeria (CBN) attracted $1.5 billion into the Nigerian economy in March, the apex bank has disclosed.
Acting Director of the Corporate Communications Department at the CBN, Mrs. Hakama Sidi Ali, in a statement in Abuja yesterday, explained that the influx of foreign capital underscores the effectiveness of its policies.
CBN noted that the inflows were a direct result of the CBN’s initiatives aimed at ensuring liquidity and stability of the foreign exchange market.
She insisted that the influx of funds was a clear indication that the measures put in place by the CBN were beginning to bear fruit, reflecting positively on the Nigerian economy.
“The Central Bank of Nigeria (CBN) says the inflow of over $1.5 billion into the economy over the past few days indicates that its monetary policy efforts are working positively,” she noted.
Sidi-Ali gave the assurance that the CBN under Olayemi Cardoso remains dedicated to maintaining market stability and ensuring naira’s competitive pricing against other major global currencies.
She hinted that naira has continued to record gains in the autonomous foreign exchange market as it traded at N1,309/$1 as against N1,611/$1 in the second week of March 2024.
“It will be recalled that the CBN’s Monetary Policy Committee (MPC) announced a two-percent increase in its benchmark rate from 22.75 per cent to 24.75 per cent on Tuesday, March 26, 2024. During his post-meeting briefing, the Governor, Olayemi Cardoso, also reiterated that the CBN had cleared all verified foreign exchange backlog, underscoring the fact that liquidity would improve in the foreign exchange market,” she added.
She noted that foreign investors purchased over $1 billion of Nigerian assets last month, with the total portfolio flows for the early part of 2024 reaching at least $2.3 billion, compared to the $3.9 billion recorded for the whole year in 2023.
At the parallel market, N1,285.093 was exchanged for one dollar while Great Britain’s pound was exchanged for N1,638.002 while N1,400.990 went for one euro.
THEGUARDIAN
