Cardoso says recent forex stability commendable

He said that the committee would continue to monitor developments in the global and domestic economies to ensure that inflationary expectations were anchored to restore and sustain macroeconomic stability.

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Cardoso says recent forex stability commendableThe Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, says recent stability achieved in the foreign exchange market is commendable.

Cardoso said this on Tuesday in Abuja, while presenting the communique from the 294th meeting of the apex bank’s Monetary Policy Committee (MPC).

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According to Cardoso, the stability is a result of CBN’s recent policy actions and reforms, which are geared towards restoring investors’ confidence and attracting foreign investments.

“The committee noted with satisfaction the level of stability achieved in the foreign exchange market in the last few weeks.

“This, in the view of members, reflects the impact of the CBN’s recent policy actions and reforms, as well as increased transparency in the market.

“In addition, the committee noted the efforts of the apex bank in offsetting verified foreign currency obligations, an action that will greatly enhance investor confidence and attract foreign investments to Nigeria,” he said.

Cardoso said that the MPC also reviewed developments in the banking system and noted that the industry remained safe, sound and stable.

He said that the apex bank would sustain its surveillance and ensure compliance of deposit money banks with existing regulatory and macroprudential guidelines.

The CBN governor said that domestic headline inflation rose further to 31.70 per cent in February from 29.90 per cent in January.

According to him, food inflation accelerated to 37.92 per cent from 35.41 per cent, while core inflation rose to 25.13 per cent from 23.59 per cent.

“Key drivers of inflationary pressure remain the strong exchange rate pass-through to domestic prices; rising cost of transportation; high cost of energy and other production inputs.

“Lingering insecurity, especially in food producing areas and legacy infrastructure deficits are also responsible,” he said.

He said that the committee would continue to monitor developments in the global and domestic economies to ensure that inflationary expectations were anchored to restore and sustain macroeconomic stability.