KEY POINTS
- Diaspora remittances rose 79.4 percent to $4.18 billion in 2024.
- The Central Bank of Nigeria carried out policy changes to manage inflation as well as stabilize the foreign exchange market.
- The intervention by Cardoso prevented inflation from reaching 42.81 percent according to his outlook.
Diaspora remittances handled by International Money Transfer Operators (IMTOs) reached $4.18 billion during the first nine months of 2024 which represented an 79.4 percent increase compared to $2.33 billion during the same period of 2023.
At the Monetary Policy Stakeholders Forum in Abuja Central Bank of Nigeria (CBN) Governor Olayemi Cardoso disclosed this information.
Governor Olayemi Cardoso established that monetary reforms coupled with financial sector reforms implemented by CBN triggered such growth in diaspora remittances.
He indicated that these strategic initiatives succeeded in combating rising prices and currency fluctuation to establish macroeconomic stability.
Policies to address economic inflation alongside price volatility
The governor of CBN recognized the difficulties stemming from rising inflation and excessive liquidity which worsened as a result of international economic instability and internal structural imbalances.
The CBN conducted anti-inflation measures by elevating the Monetary Policy Rate (MPR) by 875 basis points to 27.5 percent while hiking Cash Reserve Ratio (CRR) to 50 percent.
The economic forecast predicted an astronomical 42.81 percent inflation rate for December 2024 yet the interventions prevented such a catastrophic outcome according to Cardoso.
Despite challenging economic conditions he declared the CBN’s dedication to maintaining stable prices and continuous economic expansion through controlled monetary policies for monetary system stability in Nigeria.
