The Central Bank of Nigeria (CBN) announced on Thursday that the country’s inflation rate and exchange rate pressures are expected to decrease in the coming year.
November witnessed a spike in the inflation rate, reaching 27.33%, marking the highest in 18 years. Despite this, CBN Governor Yemi Cardoso projects a decline in 2024.
Speaking before the Joint Committee on Banking, Insurance, and Other Financial Institutions in Abuja, Cardoso conveyed optimism about the domestic economy’s positive trajectory for the upcoming year.
He stated, “Inflation pressures may persist in the short-term but are expected to decline in 2024. Exchange rate pressures are also expected to reduce significantly with the smooth functioning of the foreign exchange market.”
Cardoso also addressed expectations of reduced oil revenue in the new year, citing several factors contributing to this anticipation. He shared insights into the total trade figures for the third quarter of 2023, revealing a positive trade balance, which is anticipated to boost external reserves.
This projection aligns with the CBN’s overall positive outlook for the domestic economy, despite current challenges. The governor’s remarks provide insights into the central bank’s strategic considerations and expectations for the economic landscape in the coming year.
