The naira gained strength against the dollar in the foreign exchange market following the Central Bank of Nigeria’s recent interest rate hike.
According to data from FMDQ, the naira rose to N1659.44 on Tuesday, up from N1675.62 on Monday, marking a N16.11 appreciation.
Similarly, in the black market, the naira improved by N5, closing at N1750 against the dollar on Tuesday, compared to N1755 the previous day.
This positive shift comes as foreign exchange turnover surged to $425.98 million on Tuesday, up from $108.79 million, reflecting a strong market reaction to the CBN’s decision to raise the benchmark interest rate to 27.50% from 27.25%. The rate hike aims to curb inflation, which stood at 33.87% in October.
Additionally, Nigeria’s economy showed growth, with the National Bureau of Statistics reporting a 3.46% increase in Gross Domestic Product for the third quarter of 2024.