CBN Reports Over $1.5 Billion Inflow, Naira Records Gains in Foreign Exchange Market

By Milcah Tanimu

According to the Central Bank of Nigeria (CBN), Nigeria’s economy experienced an inflow of over $1.5 billion in recent days, signaling the effectiveness of the CBN’s monetary policy measures.

Hakama Ali, the Bank’s Acting Director of Corporate Communications, revealed this development, attributing the inflows to concerted efforts aimed at stabilizing the foreign exchange market.

Ali noted that the naira has also strengthened in the Autonomous Foreign Exchange market, trading at N1,309/$1 compared to N1,611/$1 in the second week of March 2024.

She emphasized that Thursday’s exchange rate indicates positive progress for the naira, affirming the Yemi Cardoso-led CBN’s commitment to ensuring market stability and appropriate pricing of the naira against major currencies.

The announcement follows the CBN Monetary Policy Committee’s decision to increase the benchmark rate by two percent, from 22.75 percent to 24.75 percent on March 26, 2024.

Governor Olayemi Cardoso reiterated the CBN’s clearance of all verified foreign exchange backlog, anticipating an improvement in liquidity in the foreign exchange market.

Furthermore, the CBN conducted a Nigerian Treasury Bills (NTBs) auction totaling N1.64 trillion on March 27, 2024, with stop rates of 16.24 percent, 17 percent, and 21.124 percent for the 91-day, 182-day, and 364-day tenors, respectively.