The Governor of the Central Bank of Nigeria, CBN, Mr Olayemi
Cardoso has reiterated the determination of the Bank’s Monetary Policy Committee, MPC, to tame inflation through conventional methods.
A statement from the CBN’s Corporate Communications Department said Cardoso stated this in an interview with Bloomberg in London on Tuesday while sharing key insights on the current state of the market, focusing on the stability of the naira and inflation rates.
He noted a deceleration in the month-on-month inflation rates, highlighting it as a positive development, assuring that MPC members remained vigilant in monitoring inflation trends and ensuring a moderation of inflation numbers.
”MPC members will continue to monitor the trajectory and are determined to ensure that they put inflation under control,” he asserted.
While highlighting a period of stability following previous volatility in the foreign exchange market, he expressed optimism about the recent improvements in liquidity and return of confidence to the market.
He attributed the new development to increased liquidity and a calmer approach from market participants on both the buy and sell sides.
”In the past, people were panicking and front-loading their requests. Now, a lot of that has calmed down. There is no inclination to do that
because liquidity has returned to the market,” he said.
Mr. Cardoso also highlighted the significant achievement of merging disparate exchange rates into a more unified system, saying: “We had two different rates; right now, we more or less have one rate. And we
believe that this is good. It allows companies to plan.”
He emphasised the importance of a predictable exchange rate for economic planning and investment, expressing confidence in the current market dynamics, where willing buyers and sellers operate freely.