The naira experienced a significant crash against the dollar in the foreign exchange market, following the Central Bank of Nigeria’s (CBN) decision to raise interest rates to 27.25% during the fifth consecutive hike.

Data from FMDQ indicated that the naira exchanged at ₦1,658.48 per dollar on Tuesday, a sharp depreciation from the ₦1,562.66 traded the previous day, reflecting a ₦95.82 drop.

Similarly, in the black market, the naira fell by ₦10, closing at ₦1,675 per dollar, compared to Monday’s rate of ₦1,665. This depreciation comes despite an increase in foreign exchange turnover, which rose to $166.36 million on Tuesday from $100.21 million on Monday.

The sharp decline in the value of the naira at both official and black markets follows the CBN’s recent interest rate hike, highlighting growing concerns over Nigeria’s currency stability amidst economic tightening measures.

The Central Bank of Nigeria (CBN) has announced the sale of $20,000 to each of the eligible Bureau De Change (BDC) operators in the country at the rate of N1,590/$.

In a circular to all Bureau De Change operators dated September 25, 2024, the apex bank said the forex would provide “additional liquidity to this segment of the foreign exchange market”.

The circular was signed by CBN’s Acting Director of Trade and Exchange Department, W.J. Kanya.

Kanya said, “To this end, the CBN has approved the sale of $20,000 to each eligible BDC at the rate of N1,590/$. This is to meet the demand for invisible transactions.

“All BDCs are allowed to sell to eligible end-users at a margin of not more than one percent above the purchase rate from CBN.

Eligible BDCs interested in this transaction are directed to make the naira payment to the CBN deposit account numbers with them.

“Also, payment confirmation and all necessary documentation for disbursement are to be submitted at the appropriate CBN branches in Abuja, Akwa, Kano and Lagos for collection of the $20,000.”

The National Bureau of Statistics has reported a rise in the price of brown beans (sold loose) in August 2024.

According to the Selected Food Price Watch for August, the average price of 1kg of brown beans surged by 271.55 per cent on a year-on-year basis to N2,574.63, up from N692.95 in August 2023.

On a month-on-month basis, the price of brown beans also recorded a 5.31 per cent increase, rising from N2,444.81 in July 2024.

“Selected Food Price Watch for August 2024 shows that the average price of 1kg beans brown (sold loose) stood at N2,574.63.

“This indicates a rise of 271.55 per cent in price on a year-on-year basis from N692.95 recorded in August 2023 and a 5.31 per cent rise in price on a month-on-month basis from N2,444.81 in July 2024,” NBS said.

Other food items also experienced significant price increases during the same period. The price of agric eggs (medium size, 12 pieces) jumped by 121.92 per cent from N1,031.55 in August 2023 to N2,289.19 in August 2024. On a month-on-month basis, the price of eggs increased by 5.48 per cent from N2,170.17 in July 2024.

Similarly, the price of sliced bread recorded a year-on-year rise of 113.16 per cent, moving from N684.85 in August 2023 to N1,459.85 in August 2024. On a month-on-month basis, sliced bread saw a 2.28 per cent price increase from N1,427.25 in July 2024.

In contrast, the price of 1kg of tomatoes dropped by 11.07 per cent month-on-month, falling from N1,693.83 in July 2024 to N1,506.35 in August 2024.

The report also showed that the price of 1kg of local rice (sold loose) rose by 148.41 per cent on a year-on-year basis, climbing from N737.11 in August 2023 to N1,831.05 in August 2024. On a month-on-month basis, the price increased by 3.65 per cent.

However, the price of yam tubers (1kg) saw a slight decrease on a month-on-month basis, dropping by 7.82 per cent from N1,802.84 in July 2024 to N1,661.80 in August 2024. Nevertheless, the year-on-year price of yam tubers still showed a significant rise of 188.31 per cent from N576.39 in August 2023.

“Also, the average price of 1kg of Yam tuber increased by 188.31 per cent on a year-on-year basis from N576.39 in August 2023 to N1,661.80 in July 2024. On a month-on-month basis, it decreased by -7.82 per cent from N1,802.84 in July 2024,” the report added.

In July, PUNCH reported that prices of Beans, Tomatoes, Irish potatoes, Garri, Yam and other food items witnessed significant price increases in June 2024.