Dr. Olayemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), has stated that the measures implemented by the apex bank will effectively address inflation in the next two quarters. He made this declaration during his keynote address at the 58th Bankers Dinner of the Chartered Institute of Bankers of Nigeria in Lagos on Friday night.
Cardoso acknowledged that although absolute inflation is still rising, the declining rate of growth indicates progress. He expressed confidence that the CBN’s continued tightening measures for the next two quarters will enable effective management of inflation.
Regarding the backlog of foreign exchange (FX) being cleared, Cardoso highlighted the CBN’s efforts over the past two months, noting positive outcomes. The measures include regular Open Market Operations (OMO) to mop up excess liquidity, OMO auctions with attractive rates, Treasury Bills offerings, removal of the cap on the remunerable Standing Deposit Facility, sustained Cash Reserve Requirement debits, and the inauguration of a new liquidity management committee within the bank.
In his goodwill message at the event, the Chairman of the Body of Banks CEOs, Ebenezer Onyeagwu, supported the efforts of the CBN, emphasizing the positive impact on the industry. He mentioned that the issues with FX forwards are being resolved, and the banking community wholeheartedly supports the transformation and initiatives of the central bank, even though some reforms may be challenging.
Onyeagwu assured that enduring short-term challenges would lead to a better and more prosperous future for the banking sector. The collaborative efforts between the CBN and banks aim to address economic concerns and contribute to the stability and growth of Nigeria’s financial landscape.