"Naira undervalued, 2024 inflation to drop to 21.4% - Cardoso

Yemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), affirms the undervaluation of the Nigerian naira and commits to swiftly determining its authentic value in the coming period.

He expressed, "The current undervaluation of the naira, combined with synchronized fiscal measures, will hasten authentic price determination soon. This collaborative strategy aims for a more equilibrium and steady exchange rate.

Addressing the 2024 Macroeconomic Outlook of the Nigerian Economic Summit Group (NESG) on Wednesday, the CBN Governor mentioned the apex bank's focus on achieving a 21.4% inflation rate within its inflation-targeting framework.

The anticipated moderation in pump prices of PMS in 2024, attributed to the expected operational status of both government and private-owned refineries, emerges as a pivotal factor in the economic equation. This foreseen stability or reduction in fuel costs is projected to have widespread implications across various sectors, contributing significantly to overall economic efficiency and resilience.

In the realm of inflation, the CBN's inflation-targeting policy aims to rein in inflation to 21.4% in 2024. Yemi Cardoso notes that this strategy will be complemented by improved agricultural productivity and the alleviation of global supply chain pressures. These factors are expected to benefit businesses by boosting consumer confidence and purchasing power, thus fostering a more stable economic environment.

According to Cardoso, the adoption of the inflation-targeting framework involves clear communication, the effective utilization of monetary policy instruments, and collaboration with fiscal authorities. This concerted effort is designed to achieve price stability and positively influence consumer behavior, contributing to a more balanced and resilient economic landscape in the year ahead.

As the Central Bank of Nigeria (CBN) pursues its inflation-targeting policy, the emphasis on achieving a 21.4% inflation rate in 2024 underscores the commitment to curbing inflationary pressures. The anticipated benefits extend beyond inflation control, encompassing improved agricultural productivity and the easing of global supply chain constraints. This holistic approach is poised to create an environment conducive to business growth, enhancing consumer confidence and purchasing power. The collaboration between monetary and fiscal authorities further emphasizes the coordinated effort to foster economic stability and resilience in the coming year.

He emphasized that the decrease in inflation will significantly benefit businesses, offering a more stable cost environment. This, in turn, may result in reduced policy rates, fostering investment, stimulating economic growth, and generating employment opportunities.





Source:Channels

Image: The Quest Times, The Fact Daily