Business News

Official exchange rate closes at N1609.51/$1 against dollar after CBN’s policy rate hike 

The official exchange rate between the naira and the US dollar on Wednesday, February 28th, 2024, appreciated slightly by 0.4% to N1609.51 per US dollar as against the N1615 to a dollar recorded the previous day, according to data published on the FMDQ where forex is officially sold. 

Simultaneously, the dollar also experienced a 1.24% gain at the parallel market.  

Market analysts attribute the movement to potential reactions following a recent media briefing by the CBN Governor, Olayemi Cardoso, regarding the CBN’s efforts aimed at stabilizing the Naira and curbing inflation. 

During the briefing, it was disclosed that the Monetary Policy Committee had increased the monetary policy rate to 22.75% from 18.75%. This adjustment was made with the intention of decelerating the pace of inflation. 

Furthermore, Cardoso emphasized that the MPC extensively discussed various distortions within the foreign exchange market, including the activities of speculators, which were exerting upward pressure on the exchange rate and contributing to inflationary pressures. 

Cardoso expressed confidence that the ongoing reforms within the foreign exchange market would produce the desired outcomes in the short to medium term.  

Data from the Nigerian Autonomous Foreign Exchange Market (NAFEM), the official platform for foreign exchange trading, revealed a marginal appreciation of the domestic currency by 0.4%, with the Naira concluding the day at N1,609.51 per dollar.   

The Great British Pound (GBP) stood at £1/N1960, an increase from £1/N2,000 recorded the previous day, this marks an increase of 2.56% compared to the rate recorded the previous day.  

Naijaonpoint reported that Binance, a widely used crypt exchange with over 170 million users worldwide disabled its peer-to-peer feature for Nigerian users. 

Known as the P2P market, the network lets users, buyers, and sellers transact without the intervention of a third party. It gained popularity among Nigerians in 2021 after former president Buhari’s administration outlawed the country’s vibrant Crypto industry. 

Following the swift depreciation of the naira, which contributed to inflation reaching an almost three-decade high of 29.9%, the FG shifted its attention to websites that offered cryptocurrency services. These websites have become a viable option for engaging in trade and setting an informal value for the naira. 

Concerns were expressed by the Central Bank of Nigeria regarding the $26 billion that came through Binance Nigeria from “unidentified sources” in the previous year.