Business News

NAFEX rate closes at N1615.94/$1 as CBN sells dollars at N1300/$1 to BDCs  

The official exchange rate between the naira and dollar fell by 2.04% to N1615.94 per US dollar on Tuesday, February 27th, 2024, this is according to data published on the FMDQ where forex is sold officially.

However, the dollar crashed against the naira in the early hours of Wednesday, February 28, 2024, gaining as much as 13.4%.

The local currency weakened despite the media briefing by the CBN Governor, Olayemi Cardoso, wherein he outlined efforts by the central bank to address the country’s forex crisis.

The governor of the apex bank announced that the monetary policy committee increased the monetary policy rate to 22.75% from 18.75%, a move aimed at slowing down the pace of inflation.

He also explained the several policy measures of the apex bank aimed at addressing the forex crisis.

Meanwhile, the closing rate of N1,615.94/$1 is at a 19% discount to the N1,301/$1 reportedly sold to BDC operators.  

This measure is intended to prevent excessive mark-ups and protect consumers from price exploitation. 

The naira declined marginally as forex traders recorded a daily turnover of $154.16 million. The market also recorded an intra-day high of N1778/$1 and an intra-day low of N1300/$1.  

During the MPC meeting, Yemi Cardoso highlighted the activities of cryptocurrency traders as a major issue for the apex bank.