Minister of Finance, Wale Edun has expressed optimism that Nigeria’s rising inflation which stood at 34.19 percent in June would moderate in the coming months.
Edun disclosed this during a press briefing in Abuja on Thursday.
According to him, the Federal Government has improved its fiscal management interventions in recent months which have started to positively impact Nigeria’s economy.
He said that the Central Bank of Nigeria, CBN, has been proactive in adjusting the interest rate which was raised to 26.75 percent on Tuesday to address inflation head-on.
He explained that the transition by CBN to a willing-buyer, willing-seller model has reduced exchange rate volatility and has improved volumes of foreign exchange trading.
He added that in the next 3-4 weeks the federal government will begin the first issuance of its dollar-denominated security of $500 million to attract foreign currency held by Nigerians abroad, adding that depending on the success of the issue, the government has no plans of raising euro bonds from the international market.
“We are optimistic that inflation, despite being sticky at the moment, will moderate soon, due to some of the commitments. Likewise, in terms of what is happening with interest rates, the gap between inflation and interest rates is narrowing.
“And what that does is it makes the Naira more viable as a store of value and reduces the incentive to switch to non-Naira investments,” he said.
Click to signup for FREE news updates, latest information and hottest gists everydayAdvertise on NigerianEye.com to reach thousands of our daily users
No comments
Post a Comment
Kindly drop a comment below.
(Comments are moderated. Clean comments will be approved immediately)
Advert Enquires - Reach out to us at NigerianEye@gmail.com