Amid one year of managing the economy, the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has called on Nigerians to be patient in the ongoing efforts to combat inflation and rising food prices in the country.
Cardoso made this appeal during a press briefing at the conclusion of the Monetary Policy Committee (MPC) meeting held in Abuja.
Cardoso emphasized that addressing inflation is a gradual process, not one that can be solved with immediate or magical solutions. He boted that despite pressure from food inflation, the general inflation rate was “moderating”, pointing out that “the tools the Central Bank is using are working”.
He stated, “I have several times and I will say again, there is no magic wand. These are things that need to take their time.
“I am pleased and confident that we are beginning to get some relief and in another couple of months we will see the more positive outcomes from the Central Bank have been doing.”
“The committee thus reiterated several challenges confronting the effective moderation of food inflation to include rising costs of transportation of farm produce, infrastructure- related constraints along the line of distribution network, security challenges in some food producing areas, and exchange rate pass-through to domestic prices for imported food items.
“The MPC urged that more be done to address the security of farming communities to guarantee improved food production in these areas.
“Members further observed the recent volatility in the foreign exchange market, attributing this to seasonal demand, a reflection of the interplay between demand and supply in a freely functioning market system,” he added.
The Central Bank of Nigeria has also blamed the recent volatility of the country’s foreign exchange market on seasonal demand for dollars.
“Members further observed the recent volatility in the foreign exchange market, attributing this to seasonal demand, a reflection of the interplay between demand and supply in a freely functioning market system,” the communique issued by the committee concluded.
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