The Central Bank of Nigeria (CBN) has disclosed that the rate of inflation in the country is expected to decline in the coming year, 2024, News About Nigeria reports.
The CBN governor, Olayemi Cardoso, made this known during his presentation to the National Assembly joint committee on banking, insurance, and other financial institutions.
He noted that the pressures on inflation are likely to persist in the remaining days of this year but will decline in 2024.
He added that the pressures on the exchange rate are also expected to reduce significantly if the foreign exchange market functions smoothly, which he said he is optimistic about.
Cardoso further explained that the outlook for the domestic economy in Nigeria for 2024 is very positive, maintaining that both the inflation and exchange rates will withstand the fluctuating pressures on them and get stabilised and maintain a positive trajectory for 2024.
The governor also noted that the oil revenue from oil exports this year was less than the previous year, adding that the total trade from the Nigerian Foreign Exchange Market (NFEM) stood at N18.804 billion in the third quarter (Q3) of 2023.
He, however, assured members of the committee that the unification of the exchange rate windows in June 2023 has ushered in a new approach to the management of the exchange rate, which, according to him, is aimed at reducing arbitrage, rent-seeking behaviour and speculation in the market.
He added that the policy will also create a market where the demand and supply of foreign exchange determine the exchange rate.
