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.