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Volume Of Transactions In Exchange Market Hit $800m – Cardoso

He stated this while addressing members of the House of Representatives at the sectoral debate on the economy.


CBN
Photo illustration of CBN Governor, Yemi Cardoso, and CBN logo

 

The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, says that for the first time in a long while, Nigeria’s volume of transactions in the exchange market rose to $800 million.

He stated this while addressing members of the House of Representatives at the sectoral debate on the economy.

“We are not a turning point and the bold reforms on the way across different segments of the economy, though initially challenging, are aimed at addressing these challenges sustainably,” he said on Tuesday.

“I am confident that positive outcomes are already emerging and will become more apparent in the near future. The dedicated and relentless efforts being made are certain to bring about significant and positive changes for our economy.

“On that note, I am happy to inform you that as of yesterday, the volume of transactions on our market was over $800 million. This is the first time in many years that it has achieved this level.”

According to Cardoso, recent reports from international rating agencies like Fitch, Moldes, Standard, and Poor’s and commendations from the World Bank have reflected a positive trajectory with an upgrade to Nigeria’s rating from stable to positive.

READ ALSO: Nigeria’s Inflation Rate Will Drop To 21% In 2024, Says Cardoso

Working Tirelessly

Acknowledging the high cost of living and inflation that is biting hard in the country, Cardoso stated that the Federal Government is working with the apex bank to address the concerns of Nigerians as well as the lawmakers.

He explained that despite the positive evaluation of Nigeria’s economy, concerns raised by the lawmakers regarding the currency rate remain.

“I acknowledge that despite these commendations, the concerns regarding the cost of living and currency rate remain. This is a major topic of concern in our villages, towns, and cities.

“The urgency of the matter is not lost on us at the Central Bank and I want to assure you that we are working tirelessly with colleagues from across government including the leadership of this House to bring lasting solutions,” he stated.

Declining Inflation In 2024

Nigeria’s inflation has been on the rise for 11 consecutive months, reaching its peak in December 2023, according to the National Bureau of Statistics (NBS).

The annual inflation rate rose to 28.92 per cent in December from 28.20 per cent in November. The headline inflation rate showed an increase of 0.72 per cent points when compared to the November 2023 headline inflation rate.

Giving an outlook for 2024, the CBN governor assured the lawmakers that inflation in the country will drop to 21%.

“Inflationary pressures are expected to decline in 2024 due to the CBN’s inflationary targeting policy aiming to rein in inflation to 21.4 per cent, aided by improved agricultural productivity and easy global supply chain pressures.

“The Nigerian foreign exchange market is currently facing increased demand pressures causing a continuous decrease in the value of naira.”

Cardoso explained that the apex bank has unveiled measures to address the persistent decline in the value of the naira.

According to him, the economy must earn through export to boost the naira He said the CBN plans to instill Confidence through stability in consumer prices and the foreign exchange market.

He believes that the policy measures of the bank are expected to impact positively on inflation.