Our Policies Are Working, $1bn Came Into The Market In Past Few Days – Cardoso
The Governor of the Central Bank, Yemi Cardoso says the measures taken so far by the apex bank to stabilize foreign exchange rates havepositive results.
He noted that these measures would help to stabilise foreign exchange rates and minimize the distortion that high exchangeon inflation, as they are closely related.
Cardoso, who disclosed this during a briefing of the Joint Senate Committee on Finance, Banking, Insurance and Financial Institutions onsaid that $1bn has come into the Nigerian market in the past few days interventions.
“We have already begun to see shifts in the positive direction. Indeed they (CBN measures) havestarted yielding early results with significant interest from foreign portfolio investors which was a concern. That has already begun to foreign exchange to the economy.
“For example,the past few days, we have had over $1 billion come into the quite frankly has answered the question of if our policies are working,” Cardoso said.
The CBN Chief said with the numbers available, hesay that the market has to the policies they have put in place.
He added that measures aimed at improving US dollar supply into the Nigerian economy have significant potential in taming theand in turn moderating inflation.
He, however, said that for these measures to be sustainable, Nigeria mustmoderate our demands for foreign exchange.
While the CBNis working hard to restore credibility to the central bank, he maintained that the issue impacting the exchange rate is the demand for US dollars for business and personal needs.
The CBN Governor also assured that inflation is expected to decline this year using the inflation targeting framework andto 21.1 percent.
The committeesummoned the Central Bank Governor
The move comes amid pressing concerns about theeconomy and the sharp decline of the naira the foreign exchange market.
The Senators are asking the CBN to give explanationsthe myriad of economic challenges the country is currently facing.