Naira slumps massively against dollar in response to CBN’s interest rate hike

The naira crashed massively against the dollar in the foreign exchange market amid the Central Bank of Nigeria’s fifth interest rate hike to 27.25 per cent.

FMDQ data showed that the naira exchanged at N1658.48 per dollar on Tuesday from N1562.66 traded on Monday.

This represents N95.82 depreciation against the dollar.

Similarly, at the black market, the naira dropped by N10 to close at N1675 per dollar on Tuesday compared to the N1665 exchange rate the previous day.

This comes despite the increase in the foreign exchange turnover to $166.36 million on Tuesday from $100.21 million traded on Monday.

The drop in the value of the naira at both foreign exchange markets comes on the heels of the CBN Monetary Policy Committee’s fifth interest rate hike on Tuesday.