CBN promises to tackle forex pressure

Folashodun Shonubi, Acting Governor of the Central Bank of Nigeria, pledged to tackle the mounting exchange rate pressure as the naira witnessed a decline against the dollar.

Shonubi made this commitment during a press interaction after the two-day Monetary Policy Committee in Abuja.

Within a week, the naira plummeted from 820/$ to 870/$ in the parallel market. The unified exchange rates in the country contributed to the ongoing depreciation of the naira, which coincided with surging inflation, increasing fuel expenses, and other economic hurdles.

“The market needs to find its level. There is pent-up demand which the market cannot cater to. Once we clear this demand, the volatility will normalise. We have started intervening, and we would continue to intervene until the market gets to our level,” Shonubi said.

The Bank of England poised to raise interest rates amidst soaring inflation
In response to surging inflation rates that surpass those of other major economies within the Group of Seven, the Bank of England is gearing up for yet another interest rate hike. Anticipations are high that during its upcoming meeting, the bank will announce its 14th consecutive rate increase.

Financial analysts are almost certain that the Bank of England will implement a quarter-percentage point raise, bringing the Bank Rate to 5.25 percent from its current 5 percent on August 3rd. There is also a considerable likelihood, around 40 percent, of a more substantial half-point increase, taking the rate to 5.50 percent.