The Naira dipped against the Dollar at the foreign exchange market after the Central Bank of Nigeria (CBN) increased its interest rate.
According to a Bureau De Change operator in Abuja identified as Dayyabu Ashiru, the Naira exchanged for N1,590 per Dollar on Tuesday from N1,570 on Monday, representing a N20 loss.
“We buy at N1,580 per dollar and sell at N1,590,” he said.
FMDQ data revealed that the Naira depreciated at the foreign exchange market. The Nigerian currency dropped to N1,548.76 per Dollar on Tuesday from N1,500.32 exchanged on Monday. The drop signifies a N48.44 loss compared to the previous day.
The dip comes despite the apex bank selling $106.5 million in foreign currency to authorised dealers last Wednesday and Thursday.
The CBN increased its interest rate to 26.75% on Tuesday from 26.25% in May.