The Naira appreciated against the dollar in the foreign exchange market following the Central Bank of Nigeria’s interest rate hike.
- According to data from FMDQ, the Nigerian currency strengthened to N1659.44 on Tuesday, up from N1675.62 on Monday, reflecting a N16.11 gain.
- In the black market, the Naira also improved by N5, closing at N1750 against the dollar on Tuesday compared to N1755 the previous day.
- This positive shift coincided with a substantial increase in FX transaction turnover, which surged to $425.98 million on Tuesday from $108.79 million.
- The foreign exchange market’s favorable response came after the CBN raised interest rates to 27.50% from 27.25% to combat the country’s inflation rate of 33.87% in October.
- Additionally, data from the National Bureau of Statistics revealed that Nigeria’s economy grew by 3.46% in the third quarter of 2024.
