Nigeria’s central bank wants to reduce inflation to around 21%, aiming to strengthen the undervalued naira currency.

The governor, Olayemi Cardoso, plans to address inflationary pressures through a new policy. Despite facing calls to raise interest rates, Cardoso expects inflation to decline in 2024 with improved agriculture and global supply chain relief.

The central bank is transitioning to a more conventional monetary approach.

Cardoso emphasizes the undervaluation of the naira, proposing coordinated efforts for a balanced exchange rate.

The goal is to enhance liquidity in the foreign exchange market and settle outstanding obligations. Source: Reuters.

https://www.reuters.com/world/africa/nigeria-central-bank-targets-inflation-decline-214-governor-2024-01-24/

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