The Naira gained value against the dollar in the foreign exchange market following the increase in interest rates by the Central Bank of Nigeria.
Data from FMDQ showed that the Nigerian currency rose to N1659.44 on Tuesday, up from N1675.62 on Monday, marking a N16.11 gain.
Also, in the black market, the Nigerian currency improved by N5, closing at N1750 against the dollar on Tuesday, compared to N1755 the day before.
This change coincides with a significant rise in FX transaction turnover, which climbed to $425.98 million on Tuesday from $108.79 million.
This showed that the foreign exchange market reacted favourably to CBN’s interest rate increase on Tuesday to 27.50%, up from 27.25%, in an effort to address the country’s inflation rate of 33.87% in October.
On Monday, data from the National Bureau of Statistics Gross Domestic Product revealed that Nigeria’s economy grew by 3.46% in the third quarter of 2024.
