Governor of the Central Bank of Nigeria, Dr. Olayemi Cardoso, had said that the measures being put in place by the apex bank will tackle inflation effectively in at least the next two quarters.
Cardoso said this on Friday night during his keynote address at the 58th Bankers Dinner of the Chartered Institute of Bankers of Nigeria in Lagos.
“While absolute inflation is still rising, the declining rate of growth indicates progress. The CBN is confident that with continued tightening measures for the next two quarters, we will be able to effectively manage inflation,” he said.
On the backlog of FX being cleared, the Central Bank boss said that the bank’s efforts in the last two months have been yielding results.
He said, “I am happy to report that our efforts over the past two months have begun to yield fruit. The activities include the following: Regular Open Market Operations to mop up excess liquidity from the banking system. An OMO auction was recently held with a top rate of 17.5 per cent for the one-year tenor, attracting an oversubscription of N350 billion. Another round of OMO has been approved to further reduce excess liquidity.
“Offering N108.1bn worth of Treasury Bills with three tenors to the investing public, which can help reduce liquidity in the banking system and support government fundraising. Removal of the cap on the remunerable Standing Deposit Facility to increase activity in the SDF window and manage liquidity.
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