Cardoso emphasized that the CBN’s monetary policy tools have significantly reduced naira volatility, stabilizing the forex market. He noted that inflationary pressures are starting to decrease, with the current inflation rate at 33.69 percent. Cardoso mentioned a positive deceleration in month-on-month inflation rates and assured that the Monetary Policy Committee (MPC) remains vigilant in monitoring and moderating inflation.
Cardoso refrained from speculating whether this marks the end of the tightening cycle that began in May 2022, indicating that future decisions will be data-driven. He commended the progress in stabilizing the naira, attributing it to the CBN’s comprehensive approach to addressing issues in the foreign exchange system, which had previously contributed to market instability.
The CBN Governor expressed optimism about the future, noting that measures taken have restored confidence in the market. The first quarter of 2024 saw significant improvements in FX liquidity, with inflows reaching the highest levels since 2021. Cardoso highlighted the establishment of a committee to increase diaspora fund inflows, which has already started yielding positive results.
Cardoso acknowledged the importance of capital inflows, particularly in mitigating the impact of exchange rate fluctuations on inflation. He expressed confidence that the measures in place would continue to enhance market liquidity, benefiting Nigeria’s economy.
Speaking during an interview with Bloomberg TV in London, Cardoso highlighted that this figure represents an increase of about 50 percent compared to previous quarters up to 2021.
Cardoso emphasized that the CBN’s monetary policy tools have significantly reduced naira volatility, stabilizing the forex market. He noted that inflationary pressures are starting to decrease, with the current inflation rate at 33.69 percent. Cardoso mentioned a positive deceleration in month-on-month inflation rates and assured that the Monetary Policy Committee (MPC) remains vigilant in monitoring and moderating inflation.
Cardoso refrained from speculating whether this marks the end of the tightening cycle that began in May 2022, indicating that future decisions will be data-driven. He commended the progress in stabilizing the naira, attributing it to the CBN’s comprehensive approach to addressing issues in the foreign exchange system, which had previously contributed to market instability.
The CBN Governor expressed optimism about the future, noting that measures taken have restored confidence in the market. The first quarter of 2024 saw significant improvements in FX liquidity, with inflows reaching the highest levels since 2021. Cardoso highlighted the establishment of a committee to increase diaspora fund inflows, which has already started yielding positive results.
Cardoso acknowledged the importance of capital inflows, particularly in mitigating the impact of exchange rate fluctuations on inflation. He expressed confidence that the measures in place would continue to enhance market liquidity, benefiting Nigeria’s economy.
