Naira Appreciates Amid CBN’s Interest Rate Hike

The naira recorded gains against the dollar in the foreign exchange market following the Central Bank of Nigeria’s (CBN) decision to increase its interest rate.

Data from FMDQ showed the naira appreciated to ₦1659.44 on Tuesday, up from ₦1675.62 on Monday, marking a gain of ₦16.11.

Similarly, in the black market, the naira strengthened by ₦5, closing at ₦1750 per dollar on Tuesday, compared to ₦1755 on Monday.

The appreciation coincided with a significant surge in FX transaction turnover, which rose sharply from $108.79 million on Monday to $425.98 million on Tuesday.

This improvement reflects a positive reaction in the FX market to the CBN’s decision to raise its benchmark interest rate from 27.25% to 27.50% as part of efforts to address the country’s inflation, which reached 33.87% in October.

Meanwhile, the National Bureau of Statistics (NBS) reported on Monday that Nigeria’s economy grew by 3.46% in the third quarter of 2024.

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