The Central Bank of Nigeria (CBN) has reportedly spent almost $8 billion in a bid to stabilize the naira against the US dollar in recent months.
This revelation was made by Bismark Rewane, CEO of Financial Derivatives, during an interview with Channels Television over the weekend.
How the CBN is Supporting the Naira
Rewane explained that, aside from spending billions to defend the naira, the government has also secured $4 billion through bond issuances to support its currency strategy.
These efforts have contributed to the recent appreciation of the naira, with exchange rates now hovering around N1,505 to N1,507 across both the official and parallel markets.
Inflation Figures Don’t Reflect Reality
Despite reports that Nigeria’s inflation rate dropped to 24.48% in January due to a rebasing of the Consumer Price Index (CPI), Rewane cast doubts on the figures.
“There’s no way inflation can drop by 10% in such a short period. The man on the street does not feel that prices have truly gone down,” he stated.
As the Nigerian economy continues to face fluctuations in currency value and inflation, many citizens are left wondering how these financial policies will impact their daily lives.
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