Naira plummets against Dollar following CBN’s innterest rate hike

The naira suffered a significant decline against the dollar in both official and black markets, shortly after the Central Bank of Nigeria (CBN) raised the Monetary Policy Rate (MPR) to 27.25% on Tuesday.

According to FMDQ data, the naira exchanged at N1658.48 per dollar, a sharp depreciation from N1562.66 on Monday, marking a N95.82 loss in a single day. On the black market, the naira also dropped by N10, closing at N1675 per dollar compared to N1665 the previous day.

This sharp decline follows the CBN’s fifth consecutive interest rate hike aimed at tackling inflation, although the higher rate has yet to stabilize the naira’s exchange value.

Despite a rise in foreign exchange turnover from $100.21 million on Monday to $166.36 million on Tuesday, the currency continued its downward trend, reflecting ongoing pressure in Nigeria’s foreign exchange market.