Foreign Exchange Inflows Up by 82.5%. The Nigeria’s foreign exchange inflows increased significantly in December of 2016 due to a rise in global oil prices.
Foreign Exchange Inflows Up by 82.5%
The Nigeria’s foreign exchange inflows increased significantly in December of 2016 due to a rise in global oil prices, the Central Bank Governor, Mr. Godwin Emefiele said.
The foreign exchange inflows rose 82.45 percent in mainly due to OPEC production cut that saw crude oil prices trading above $50 a barrel.
Demandsupplier will like to stress that this is an artificial manipulation of the fuel prices and is not sustainable.
The CBN governor went on to state that the foreign exchange policy of the apex bank was well designed speed up Nigeria’s economic recovery.
He stated that 60 percent of the available foreign exchange allocated to the manufacturing sector had started yielding based on the current manufacturing index released by the National Bureau of Statistics.
Right now, Nigeria’s the external reserves stand at $28.9 billion, gaining about $2 billion dollars within two weeks, from $27 billion recorded two weeks ago.
On Increasing Inflation
A 10-person committee made the Monetary Policy and attended the monetary policy meeting between Monday and Tuesday this week.
On the increasing inflation, he noted that “the committee said inflationary pressures would begin to ease as non-oil output recovers and the Naira exchange rate stabilizes.”
However, the governor said that until then, a rate cut would worsen the current progress and undermine the outlook of foreign exchange market.
“The committee also feels that doing so will further aggravate demand pressures, while undermining the existing income levels in the face of the already expansionary monetary policy and increasing inflationary pressure, which will make the economy unattractive for foreign and domestic investment.”
“Given these limitations, the committee was reluctant to lower the policy rate on this occasion, but remains committed to doing so when the conditions permit.”
This means that the 10 member committee voted to maintain the current monetary policy rate at 14 percent, while Cash Rate remains 22.5 percent.