Naira Rises Over 100 Basis Points Against Dollar as CBN Announces Changes to Savings Account

• The naira closed at N1,382.95 to the dollar on Tuesday, March 26, 2024, according to official data.
• The volume of trade increased from the $222.15 million it recorded on Monday to $245.58 million on Tuesday
• This occurred after the CBN's MPC announced it had raised the benchmark interest rate by 200 basis points to 24.75%

Naira, the Nigerian local currency, has again witnessed growth against the United States dollar, closing on Tuesday, March 26, 2024.

FMDQ data showed that the naira appreciated by 1.78% to close at N1,382.95 to the dollar against the previous close of N1,408.04/dollar on Monday. This represents a 178 basis point increase.

During the trading hours, the official market, also known as the Nigerian Autonomous Foreign Exchange Market (NAFEM), recorded an intraday high of N1,486/dollar while the intraday low was N1,300/dollar.

Read also

Good news for Nigerians as international airline sell ‘cheap’ tickets over new Forex rate

In addition, the total turnover jumped to $245.58 million on Tuesday from the $222.15 million it recorded on Monday.

This came after the Monetary Policy Committee (MPC) of the Central Bank of Nigeria raised the benchmark interest rate by 200 basis points to 24.75%.

Yemi Cardoso, the governor of the CBN, made this announcement in a press conference on Tuesday following the second MPC meeting of his term in Abuja, as reported by Channels TV.

This occurred roughly a month after the MPC announced 22.75%.

According to the CBN governor, the recent action is a component of the nation's efforts to counteract the growing inflation rate, estimated to be 31.70% in February.

Read also

Currency in circulation hits all-time high as CBN makes loans very expensive for Nigerians

Cardoso declared that deposit money banks would continue to maintain a 45% Cash Reserve Ratio (CRR).

Nevertheless, the MPC changed merchant banks' CRR from 10% to 14%. The committee decided to keep the liquidity ratio at 30% as well.

Naira appreciates against British pound across markets

Legit.ng earlier reported that the Nigerian currency also gained massively against the pound sterling, recording over N200/£ gain in just one week.

Data collated from the CBN showed that the naira closed at N1,772.78/£ on Friday, March 22, compared to the N2,003.85/£ it ended the previous week, Friday, March 15.

This represents a significant appreciation of N231.07/£ in just one week.

Source: Legit.ng