The Governor of the Central Bank of Nigeria, Yemi Cardoso, has remarked that rising inflation and exchange rates are projected to drop in 2024.
The chief of the central bank also predicted that oil export earnings would decline in the coming year.
The CBN governor gave these observations on Thursday in Abuja when he addressed the Joint Committee on Banking, Insurance, and other Financial Institutions.
According to Cardoso, the total trade on the Nigerian Foreign Exchange Market was N18.804 billion as of the third quarter of 2023.
He was upbeat about the state of the domestic economy in 2024, emphasizing that volatile currencies and inflation are both expected to absorb volatile pressures, leading to stabilization.
The Governor of the Central Bank of Nigeria, Yemi Cardoso, has remarked that rising inflation and exchange rates are projected to reverse in 2024.
The chief of the central bank also predicts that oil export earnings would decline in the coming year.
The CBN governor said, “The outlook for the domestic economy is expected to remain on a positive trajectory through 2024. Inflation pressures are expected to decline in 2024, but they may persist in the short term.
“A smooth functioning foreign exchange market is also expected to significantly reduce exchange rate pressures.”
The governor of the Central Bank of Nigeria went on to say that the June consolidation of exchange rate windows led to the development of a new currency rate management policy that aims to reduce arbitrage, deterrent-seeking conduct, and market speculation.
“The policy aims to create a market where the exchange rate is determined by supply and demand for foreign exchange,” he said.
He said, “Total trade was N18.8 trillion in the third quarter of 2023, with exports valued at N10.3 trillion and imports totaling N8.4 trillion.”
Regarding the oil industry’s income prognosis, Mr. Cardoso stated that he anticipates lower oil industry revenue in 2019 as a result of Nigeria’s 1.78mpd OPEC quota.
He made references to production halts, divesting from oil majors, and theft of crude oil as the reasons behind the nation’s poor oil output in the last few years.
Nigeria’s inflation rate increased steadily for nine months, reaching a record high of 27.33% in November—the highest level in eighteen years. By December, KPMG forecasts that the rate of inflation would rise to 30%, while the federal government anticipates a decline to 21.4% in 2024 according to the budget proposal.
He continued, “Since the CBN unified the foreign currency market in June, the value of the naira has dropped by more than 50%. The naira has traded at more than N1000 to the USD this month on the black market.”
