Naira Surges to N1,290 Per USD: Positive Impact of CBN’s Interest Rate Hike

The Nigerian Naira has shown significant appreciation against the US dollar, trading at N1,290 per USD on Tuesday, March 27, 2024.

This positive development comes on the heels of the Central Bank of Nigeria’s (CBN) recent decision to raise the interest rate by 200 basis points to 24.75% from 22.75%.

According to a Bureau De Change Operator at Wuse Zone 4 in Abuja, the Naira gained further on Tuesday, with BDCs buying at N1,285 per USD and selling at N1,290.

This represents a notable N70 gain compared to the N1,360 per USD traded on Monday.

The positive trend is also reflected in the official foreign exchange market, where the Nigerian currency was exchanged at N1,382.95 per USD on Tuesday, up from N1,408.04 on the previous day.

This translates to a substantial N25.09 gain against the USD in the forex market.

This surge in the Naira’s value can be attributed to the recent interest rate hike by the CBN’s Monetary Policy Committee (MPC).

The decision to raise the interest rate by 200 basis points to 24.75% was made in an effort to combat inflation and stabilize the economy.

As the Naira continues to strengthen against the USD, it is expected to have a positive impact on Nigeria’s economic growth.

A stronger currency will make imports cheaper, reduce the cost of foreign exchange, and boost the purchasing power of Nigerian consumers.

The recent appreciation of the Naira against the USD is a promising sign for Nigeria’s economy.

As the CBN’s monetary policy measures continue to take effect, it is hoped that the Nigerian currency will maintain its upward trajectory, leading to further economic growth and development.