The naira fell by N95.83 to N1,658.48 against the dollar after the Central Bank of Nigeria's rate hike. Increased dollar supply saw market activity surge by 66%. The CBN raised interest rates to 27.25% to stabilize the currency amid growing inflation and monetary supply concerns.
The naira depreciated by N95.83 against the dollar on the official foreign exchange market on Tuesday, following the Central Bank of Nigeria's (CBN) decision to raise interest rates.
The naira dropped 5.8%, closing at N1,658.48 per dollar, compared to N1,562.66 on Monday. Dollar supply surged, with a 66% increase in market activity. The intraday high reached N1,682, while the low was N1,570.
In the parallel market, the naira dropped to N1,675. CBN Governor Yemi Cardoso attributed the naira's volatility to increased money supply, particularly from government borrowing, leading to inflation and currency instability. The CBN raised interest rates for the fifth time in 2024 to 27.25%.
