Naira on Tuesday, crashes further to N1,520.40/$1 as against N1,478.11/$1 posted in the previous session on Monday, data published by FMDQ has revealed.
Naira depreciated against the United States dollar at both the authorised and unauthorised forex markets on Tuesday.
The currency rate on Tuesday implies a N42.29 or 3.00 per cent depreciation from N1,478.11 recorded on Monday .
Forex turnover traded within the business period plummeted by 40.84 per cent ($128.76 million) from $217.64 million recorded in the previous segment on Monday.
Meanwhile, the naira experienced an intraday high of N1,350.00 and a low N1,568.00 to a dollar before it finally closed at N1,520.40$1 at the authorised session of the FX market.
Similarly, the local currency fell at the parallel market on Tuesday, after it traded at N1,500 mark and above, as against the N1,400/$1 and above recorded on Monday.
According to the unofficial market data posted, the minimum rate the dollar traded at the parallel market on Tuesday was N1,503/$1, as against N1,488/$1 recorded on Monday.
The Naira was able to extend its appreciation from mid-March till mid-April, before the recent decline. The naira however closed flat against the dollar in April appreciation only by about 0.04 percent in the official market, according to a report.
A report by Comercio Partners noted that the transition from a managed fixed to a floating exchange rate regime resulted in a depreciation of the naira, with significant volatility leading to a low of N2000/1$.
This continuous depreciation may have prompted the Central Bank of Nigeria (CBN) to take action to support the exchange rate by increasing the monetary policy rate (MPR).
In February 2023, the CBN, under the administration of Cardoso, implemented the first-rate hike, raising the MPR by 400 basis points to 22.75 per cent.
This was followed by an additional increase in March, raising the MPR by 200 basis points to 24.75 per cent.
These hikes in interest rates coincided with a strengthening of the naira, which appreciated to as high as N1,150/$1, the report stated.
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