The currency market Intervention by the Apex bank to meet demand for dollar in the economy is already having early impact on the inflation. The report released by the National Bureau of Statistics (NBS) on Thursday revealed that Inflation declined for the first time in 15 months to 17.26 percent in March, down from 17.78 percent in February.
“The second consecutive month of a decline in the headline rate represented the effects of stabilizing prices in already high food and non-food prices. It is also indicative of early effects of a strengthened Naira in the foreign exchange rate market”. The statistics bureau said.
In a separate report by economicstrading.com. Inflation Rate in Nigeria is expected to be 16.30 percent by the end of this quarter (June 2017). “according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Nigeria to stand at 15.10 percent in 12 months time. In the long-term, the Nigeria Inflation Rate is projected to trend around 11.20 percent in 2020, according to our econometric models”.
The central bank has sold over $4.5billion in FX through the commercial banks to qualifying importers since February in an attempt to improve dollar liquidity and narrow the spread between the official and the parallel market exchange rates. The parallel market rates have fallen by more than 20% since the CBN Intervention.