Naira loses 1.47% on black market after rate hike

The naira on Wednesday weakened against the dollar, losing 1.47 percent at the parallel market also, known as the black market.

The local currency was quoted at N1,500 per dollar on Wednesday, a day after the Central Bank of Nigeria (CBN) raised its monetary policy rate (MPR), by 150 basis points to 26.25 percent, the third straight time this year.

The naira had appreciated against the dollar for two days to N1,478 from its renewed peak of N1,530 on May 14, 2024, on the parallel market.

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A trader informed BusinessDay that there was a significant demand for the dollar, but it was not readily available in large quantities.

At the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Tuesday, the naira appreciated marginally by 0.23 percent as the dollar was quoted at N1,465.68 as against N1,468.99 quoted on Monday according to the data from the FMDQ Securities Exchange Limited.

The intraday high closed at N1,549 per dollar on Tuesday, stronger than N1,556 closed on Monday. The intraday low closed flat at N1,401/$1 compared to N1,400 quoted on Monday.

The daily foreign exchange market turnover increased by 66.14 percent to $268.17 million on Tuesday from $161.41 million recorded on Monday.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.