How CBN Averted Inflation Surge To 42.81% – Cardoso

How CBN Averted Inflation Surge To 42.81% – Cardoso

The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has stated that strategic policy interventions by the apex bank prevented Nigeria’s inflation from skyrocketing to 42.81% by December 2024…READ MORE…

Speaking at the 2025 Monetary Policy Forum in Abuja on Thursday, Cardoso reaffirmed the CBN’s commitment to orthodox monetary policies to curb inflation in 2025.

Key Monetary Policies That Contained Inflation

Cardoso highlighted several bold policy measures implemented across six Monetary Policy Committee (MPC) meetings in 2024, including:

• Raising the Monetary Policy Rate (MPR) by 875 basis points to 27.50%
• Increasing the Cash Reserve Ratio (CRR) for Other Depository Corporations by 1,750 basis points to 50.00%
• Adjusting the asymmetric corridor around the MPR

“Without these decisive interventions, inflation could have surged to 42.81% by December 2024,” he stated.

Foreign Exchange Reforms and Economic Impact

The CBN governor also outlined critical foreign exchange (FX) reforms aimed at improving market efficiency, including:

• Unifying multiple exchange rate windows, leading to a 79.4% increase in remittances via International Money Transfer Operators, from $2.33bn in 2023 to $4.18bn in the first three quarters of 2024.
• Clearing a $7bn FX backlog, restoring market confidence and improving FX liquidity.
• Lifting restrictions on 41 previously banned items from accessing the official FX market since 2015.
• Introducing new minimum capital requirements for banks, effective March 2026, to enhance sector resilience and global competitiveness.

Financial Inclusion and Market Transparency

As part of efforts to enhance financial inclusion, the CBN launched the WIFI initiative under the National Financial Inclusion Strategy to empower women with financial services, education, and digital tools.

Additionally, the Nigeria Foreign Exchange Code was introduced to strengthen transparency, integrity, and efficiency in the FX market.

“This code is a binding commitment by the financial sector to rebuild trust and boost confidence,” Cardoso concluded.

For More Information And News Update, Join Ireporteronline WhatsApp Channel With Link Below: https://whatsapp.com/channel/0029VaV4jB6DuMRgwqnJCF32 For advertisement inquiries only, kindly send a message to 09010649814 on Whatsapp