Naira Records First Gain at Official Market After Rate Hike

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The Nigerian naira has experienced a slight appreciation of 0.39 percent in the official foreign exchange (FX) market, marking its first gain following the Central Bank of Nigeria’s (CBN) recent adjustment of its benchmark interest rate.

Despite a 22.71 percent decrease in dollar liquidity, dropping to $119.14 million on Wednesday from $154.16 million the previous day, the naira strengthened against the dollar.

The CBN raised its benchmark interest rate, the Monetary Policy Rate (MPR), by 400 basis points to 22.75 percent, signaling a proactive measure to manage economic stability. Data from the FMDQ Securities Exchange indicates that after trading on Wednesday, the dollar was quoted at N1,609.51 compared to N1,615.94 on Tuesday at the Nigerian Autonomous Foreign Exchange Market (NAFEM).

Additionally, the intraday high appreciated to N1,660 per dollar, while the intraday low decreased to N1,401 per dollar, marking a record low and highlighting fluctuations in currency valuation.

Source: Business Day

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