The Center for Economic Development and Financial Policies (CEDFP) has praised the Central Bank of Nigeria (CBN) for maintaining a stringent monetary policy, observing that this strategy is starting to produce favorable outcomes for the Nigerian economy.
As per a declaration issued by its Managing Director, Dr. Mary Odoma The team commended CBN Governor Olayemi Cardoso for keeping policies consistent amid economic challenges, characterizing his guidance as a stabilizing influence.
"We applaud the CBN governor for steering a steady path, particularly during challenging transitions. The consistent communication and dedication to conventional monetary policies have started producing tangible results," stated Odoma.
23.71% in April, compared to 24.23% in March.
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"Monetary policy isn’t magic, yet maintaining discipline yields benefits. This shift demonstrates the CBN’s commitment to choosing stability rather than fleeting political expediency," she stated additionally.
The team also pointed out a recovery in Nigeria’s foreign reserves, which have now exceeded $38.9 billion, describing this as an indication of better macroeconomic stewardship and regained trust.
"A few months back, the outlook was grim. However, nowadays, we observe increased faith in the naira and reduced discrepancies in the foreign exchange market," Odoma pointed out.
She attributed the progress to foreign exchange reforms, decreased central bank debts, and an emphasis on long-term stability rather than superficial adjustments.
Enhanced group highlights bolstered investors' optimism.
CEGMR also highlighted the positive shift in investor mood, referencing recent global rating enhancements along with forecasts indicating more than 4% GDP growth expected for 2025.
Given that the GDP is expected to rise by more than 4% this year, the indicators look positive. However, these signs need protection. It’s crucial to maintain consistent policies.
Even though they commended the Central Bank of Nigeria for its transparent practices and evidence-based policies, the group encouraged financial regulators to support these monetary initiatives by addressing underlying problems like food scarcity, energy provision, and safety concerns.
"Inflation is not solely a monetary concern; structural issues must also be tackled. However, at least we now have a monetary policy framework that allows for potential advancements," she stated.
Odoma likewise cautioned against cutting interest rates too early, emphasizing that such actions might erode the hard-earned trust built up over several months.
The bank needs to solidify its progress and steer the economy towards reduced inflation without jeopardizing a setback.
She ended her statement by urging political figures to back the central bank's independence and sustain the progress of reforms.
The Central Bank of Nigeria's performance under Cardoso has reignited faith in prudent macroeconomic governance. For the first time in many years, Nigerians are starting to witness signs of economic stability returning. This achievement deserves recognition.
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