Naira depreciates against US dollar despite CBN intervention

After three days of respite, the Naira depreciated on Tuesday against the US dollar at the foreign exchange market despite the Central Bank of Nigeria’s recent interventions.

Data from FMDQ showed that the Naira depreciated to N1,433.89 per US dollar on Tuesday from N1,419.86 on Monday.

This represents a 0.98 per cent or 14.03 depreciation compared to N1,419.86 recorded at the close of trading on Monday.

Meanwhile, the Naira recorded a gain at the parallel market, which traded at 1,410 per US on Tuesday, the same rate it traded on Monday.

The Naira recorded a significant gain against the US Dollar at the Foreign Market amid the Central Bank of Nigeria’s sweeping policy interventions.

The CBN Governor, Olayemi Cardoso, told the House of Representatives on Tuesday that following the bank’s recent policy intervention, the country’s volume of transactions in the exchange market rose to $800 million for the first time.

DAILY POST recalls that in the last seven days, CBN released four policy reforms to wrestle down the free fall of Naira.

CBN last week issued ‘Financial Markets Price Transparency and Market Notice’, weakening the Naira from N891.90 per US dollar on 26th January to N1,410.

Also, the CBN released a guideline last Wednesday to curb foreign currency hoarding and speculation.

The country’s apex bank also issued fresh guidelines for International Money Transfer Operators in Nigeria and removed the cap on the exchange rate quoted by IMTOs.