Financial Derivatives Company, a firm owned by financial expert, Bismarck Rewane, says it will take time for foreign exchange rate gains to translate to reduced commodity prices.
Since Olayemi Cardoso assumed office as the governor of the Central Bank of Nigeria (CBN), efforts have been geared towards stabilising the FX rates.
The incessant depreciation in the Nigerian currency is said to have continuously affected the price of commodities and significantly contributed to inflation rate which stood at 31.70 percent in February – up from 29.90 percent in January 2024.
In tightening inflation, the monetary policy committee (MPC) at its last meeting raised the monetary policy rate (MPR), which benchmarks interest rates, from 22.75 percent to 24.75 percent to rein inflation.
