The Nigerian currency showed strength in the official market but still struggled in the black market, even after the Central Bank of Nigeria (CBN) increased interest rates to help stabilize the naira.
Data from FMDQ showed that the naira got stronger in the official market, rising to N1,659.44 per dollar on Tuesday, up from N1,675.62 per dollar on Monday. However, the unofficial black market rate in Nigeria’s main cities remained flat, at N1,750 per dollar on Wednesday morning.
To fight against ongoing inflation and support the naira, the CBN’s Monetary Policy Committee (MPC) unanimously increased the Monetary Policy Rate (MPR) by 25 basis points, from 27.25% to 27.50%. Other important factors, like the Cash Reserve Ratio (CRR) for banks, remained unchanged.
CBN Governor Yemi Cardoso reaffirmed the central bank’s dedication to maintaining naira stability, highlighting the significance of a stable currency for encouraging investment and economic planning.
“The Nigerian Central Bank is here to ensure stability. Stability helps with economic planning,” Cardoso stated. “We are using all available tools, including penalizing those who act improperly and implementing various measures to ensure market stability.”
Cardoso also mentioned that the naira has stayed stable since June 2024, even with inflationary pressures and global economic uncertainties.
As part of efforts to improve foreign exchange (FX) management and transparency, the CBN required Nigerian deposit money banks to use the Bloomberg BMatch platform for FX trading.
The Electronic Foreign Exchange Matching System (EFEMS), set to start on December 2, will automate FX trading, enhance price discovery, and boost operational efficiency.
