Naira falls as CBN increases interest rate

Naira on Tuesday fell marginally by 0.08 percent against the dollar at the official market, the same day that the Central Bank of Nigeria (CBN) raised its benchmark interest rate for the fifth straight time to 17.5 percent.

After trading on Tuesday, Naira depreciated by 0.08 percent as the dollar was quoted at N462.00 as against the last close of N461.63 on Monday at the Investors and Exporters (I&E) forex window, Nigeria’s official market, data from the FMDQ indicated.

The value of the domestic currency fell in the market segment amid a decline in the forex turnover by $20.73 million or 15.6 per cent to $112.04 million from $132.77 million.

Most currency dealers who participated at the foreign exchange auction at I&E on Tuesday, maintained bids between N440.00 (low) and N463.00 (high) per dollar.

READ ALSO:Naira falls as dollar demand jumps by $35.96m

Also, at the parallel market, the Nigerian currency depreciated by N2 against its American counterpart during the session to settle at N749/$1, in contrast to Monday’s value of N747/$1.

At the Peer-2-Peer (P2P) segment, the local currency lost N10 against the greenback yesterday to trade at N770/$1 compared with the previous day’s rate of N760/$1.

Similarly, in the interbank segment, the Naira depreciated against the Pound Sterling by N4.50 to trade at N567.21/£1 versus N562.71/£1, and declined by N7.44 against the Euro to close at N500.53/€1, in contrast to Monday’s rate of N493.09/€1.

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