CBN: Inflation, Exchange Rate’ll Decline in 2024

CBN: Inflation, Exchange Rate’ll Decline in 2024

The Central Bank of Nigeria (CBN) has said that the galloping inflation and exchange rates in Nigeria will drastically decline in 2024. The apex bank, while at the National Assembly, Abuja, yesterday, also projected less revenue from oil exports next year. It also declared that total trade from Nigerian Foreign Exchange Market (NFEM) stood at N18.804 billion in the third quarter (Q3) of 2023. The Governor of the CBN, Olayemi Cardoso, made the declarations in his presentation to the National Assembly joint Committee on Banking, Insurance and Other Financial Institutions yesterday.

He told members of the Joint Committee that the outlook for the domestic economy in Nigeria for 2024 was very positive as both the inflation and exchange rates would with- stand fluctuating pressures on them and get stabilised. “The outlook for the domestic economy remains positive and is expected to maintain the positive trajectory for 2024. “Inflation pressures may persist in the short – term but are expected to decline in 2024. Exchange rate pressures are also expected to reduce significantly with the smooth functioning of foreign exchange market,” he said.

He informed the Committee that the unification of the exchange rate windows in June 2023 had ushered in a new approach to the management of the exchange rate, aimed at reducing arbitrage, rent seeking behaviour and speculation in the market. “The policy aims at creating a market where the demand and supply of foreign exchange determines the exchange rate. The premium has narrowed and our focus on increasing the autonomous FX supply, would lead to more stability and further narrowing of the premium.

“Total trade in the third quarter of 2023 stood at N18.804 billion. Exports were valued at N10.346 billion while total imports stood at N8.457 billion. This represents positive trade balance, which will lead to an increase of the external reserves,” he said. Cardoso, however, stated that due to domestic prevailing factors, less revenue would be earned from oil exports in 2024.

Earlier before the CBN Governor’s presentation, the Chairman of the Joint Committee, Senator Tokunbo Abiru (APC Lagos East), said that the interactive session was organised for statutory briefing by CBN in line with extant laws. The co-Chairman of the Committee, Hon. Bahir Bello El-Rufai, in his remarks, commended the CBN governor and the entire management team on measures being put in place to stabilise the economy generally.

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