The Naira depreciated against the dollar at the parallel foreign exchange market after the Central Bank of Nigeria retained the country’s interest rate.
The naira fell to N1,628 per dollar in the parallel market on Tuesday, down from N1,617, as Bureau de Change operators cited muted reaction to the Central Bank’s decision to maintain interest rates at 27.5%. The 0.04% gain at the official market to N1,598.68 offered little consolation to forex users facing widening exchange rate gaps.
CBN Governor Olayemi Cardoso defended the Monetary Policy Committee’s stance, noting the naira’s “improved competitiveness” amid April’s 24.23% inflation rate. However, the currency’s parallel market weakness persists, raising questions about the effectiveness of monetary policy in stabilizing exchange rates.
READ THE FULL STORY IN DAILY POST