The Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, has declared that the Nigerian naira is undervalued, promising to expedite the discovery of genuine price in the near term. He said, “We believe that the naira is currently undervalued, and coupled with the coordinated measures on the fiscal side, we will expedite genuine price discovery in the near term. This coordinated approach will contribute to a more balanced and stable exchange rate.”
The CBN Governor, who spoke at the 2024 Macroeconomic Outlook of the Nigerian Economic Summit Group (NESG) on Wednesday, also said that the apex bank is looking at an inflation rate of 21.4 per cent under its inflation-targeting regime.
“The anticipated moderation in pump prices of PMS, due to the expected operational status of the country’s government and private-owned refineries in 2024 is a pivotal factor in the economic equation.
The adoption of inflation targeting framework according to the CBN Chief, involves clear communication, use of monetary policy instruments and collaboration with fiscal authorities to achieve price stability and positively influence consumer behaviour.
He maintained that declining inflation will have a great impact on businesses, providing a more predictable cost environment and potentially, leading to lower policy rates, stimulating investment, stimulating growth and creating job opportunities.
Credit: channelstv.com
