At the ongoing World Bank/IMF summit in Washington D.C., Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, responded to concerns raised by Central Bank Governor Yemi Cardoso about FAAC disbursements contributing to foreign exchange (FX) market pressures.
Edun highlighted that the core issue facing Nigeria’s FX market is the limited supply of foreign currency. As an oil-producing nation, he emphasized that increasing oil production would significantly alleviate FX shortages.
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“The key to resolving foreign exchange pressures is improving supply. As an oil-producing country, raising oil output would address these challenges,” he said.
On interest rates, Edun affirmed that the Central Bank of Nigeria (CBN) will maintain its tight monetary stance until inflation is under control.
He explained that unlike Western economies, which have reduced interest rates after curbing inflation, Nigeria must continue its efforts to tame rising prices before easing monetary policy.
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