The naira experienced a significant decline against the dollar in the foreign exchange market following the Central Bank of Nigeria’s (CBN) fifth interest rate hike, raising the rate to 27.25%.
According to FMDQ data, the naira traded at N1,658.48 per dollar on Tuesday, down from N1,562.66 on Monday, marking a depreciation of N95.82.
Similarly, in the black market, the naira weakened by N10, closing at N1,675 per dollar on Tuesday, compared to N1,665 the previous day.
This decline occurred despite an increase in foreign exchange turnover, which rose to $166.36 million on Tuesday from $100.21 million on Monday.
The naira’s drop in both official and parallel markets follows the CBN’s Monetary Policy Committee’s decision to implement its fifth interest rate hike on Tuesday.