The Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, has reiterated the determination of the bank’s Monetary Policy Committee (MPC) to tame inflation through conventional methods.
Cardoso stated this in an interview with Bloomberg in London on Tuesday, June 25, 2024.
The CBN Governor, while sharing key insights on the current state of the market, mainly focusing on the stability of the naira and inflation rates, noted a deceleration in the month-on-month inflation rates, highlighting it as a positive development.
He assured that the 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,” Cardoso said.
While highlighting a period of stability following previous volatility in the foreign exchange market, Cardoso 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.
CBN: Monthly inflation rate reflects our monetary policy
The CBN boss added: “In the past, people were panicking and front-loading their requests.
“Now, a lot of that has calmed down. There’s no inclination to do that because liquidity has returned to the market.”
Cardoso also highlighted the significant achievement of merging disparate exchange rates into a more unified system.
“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 stated, emphasising the importance of a predictable exchange rate for economic planning and investment.
The CBN Governor further expressed confidence in the current market dynamics, where willing buyers and sellers operate freely, noting that it had contributed to the stability of the naira.
Cardoso, however, stressed the importance of continuous observation and management to ensure the market benefits all participants.
Cardoso also highlighted the crucial role of coordinated monetary and fiscal policies in achieving economic stability, adding that the collaboration was essential for managing the macroeconomic fundamentals that influence the market, aiming to provide the best value for the naira.
According to the National Bureau of Statistics (NBS), Nigeria’s annual inflation rose to a 28-year high of 33.95 per cent in May 2024.
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