* $1bn has come into the Nigerian market, says apex bank chief
The Senate Committee on Banking, Insurance and Financial Institutions, on Friday, held an interactive session with Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, alongside other top officials of the apex bank.
The meeting, which was sequel to an earlier summon on January 31 by the Upper Legislative chamber to the CBN Governor to appear before it, is not unconnected with current hardship and high cost of living Nigerians are experiencing.
It is also coming two days after Cardoso appeared before the House of Representatives, where he was made to face a barrage of questions over the free fall of the Naira and the foreign exchange crisis.
Insiders say the Senate, worried over the situation in the country, is seeking answers and solutions from the apex bank Governor and plans to stabilise the currency and restore confidence in the economy.
Meanwhile, Cardoso has insisted that the measures taken so far by the apex bank to stabilize foreign exchange rates have started yielding positive results.
He noted that the measures would help to stabilise the foreign exchange rates and minimize the distortion that high exchange has on inflation, as they are closely related.
Cardoso said, for instance, that $1billion has come into the Nigerian market in the past few days through the CBN interventions.
“We have already begun to see shifts in the positive direction. Indeed they (CBN measures) have already started yielding early results with significant interest from foreign portfolio investors which was a concern. That has already begun to supply the much-needed foreign exchange to the economy.
“For example, upward of the past few days, we have had over $1 billion that has come into the market, and this quite frankly has answered the question of if our policies are working,” Cardoso added.
Cardoso pointe0 out that with the numbers available, he can say that the market has been responding to the policies they have put in place.
He added that measures aimed at improving US dollar supply into the Nigerian economy have significant potential in taming the volatility of the exchange rate and in turn moderating inflation.
He, however, said that for these measures to be sustainable, Nigeria must as a country moderate its demands for foreign exchange.
While the CBN, according to him, is working hard to restore credibility to the central bank, he maintained that the genuine issue impacting the exchange rate is the demand for US dollars for business and personal needs.
He reiterated his earlier assurance that inflation is expected to decline this year, using the inflation targeting framework and moderating to 21.1 percent.
The Senate committee, on January 31, summoned the Central Bank Governor to appear before it.
The move interaction comes amid pressing concerns about the State of the economy, and the sharp decline of the Naira in the foreign exchange market.