The Nigerian Naira remained stable against the dollar at the official foreign exchange market on Wednesday, even after the Central Bank of Nigeria (CBN) raised interest rates by 1.5%. This stability follows a slight gain earlier in the week.
Analysts see a potential benefit for consumers if the Naira remains stable. Lower import costs due to a stronger Naira could lead to reduced prices for imported goods. Additionally, higher interest rates might make the Naira more attractive to investors, potentially leading to increased foreign investment and lower inflation.
However, the Naira did lose ground on the parallel market, weakening by about 1.5%. Overall, the impact of the CBN’s rate hike on the exchange rate remains to be seen.
Source: Business Day