CBN Governor, Cardoso has assured that efforts by the Apex bank will seek to minimise the distortion that high exchange has on inflation.
The Central Bank of Nigeria (CBN) has disclosed that its efforts to stabilise foreign exchange rates to ease the economic situation in the country are beginning to yield results.
The CBN governor, Olayemi Cardoso, who disclosed this during an interactive session with the Joint Senate Committee on Finance, Banking, Insurance and Financial Institutions, Agriculture and Appropriations on Friday, said that $1bn has come into the Nigerian market in the past few days through the CBN interventions.
OrderPaper recalls that the Senate had summoned the economic team including the CBN governor, Minister of Finance, Wale Edun; the Minister of Budget and Economic Planning, Atiku Bagudu, the Minister of Agriculture, Abubakar Kyari, to address the current economic situation and the free fall of the Naira on the country.
Speaking during the interactive session, Cardoso assured that the measures would help to stabilise the foreign exchange rates and minimise the distortion that high exchange has on inflation.
He said, “These measures, aimed at ensuring a more market-oriented mechanism for exchange rate determination, will boost foreign exchange inflows, stabilize the exchange rate, and minimize its pass-through to domestic inflation
“We have already begun to see shifts in the positive direction. Indeed they (CBN measures) have already started yielding early results with significant interest from foreign portfolio investors which was a concern. That has already begun to supply the much-needed foreign exchange to the economy.
“For example, upward of the past few days, we have had over $1 billion that has come into the market, and this quite frankly has answered the question of if our policies are working,” he said.