Naira Weakens Despite Hike In Rate

The naira on Tuesday depreciated against the dollar at the Investors and Exporters window, exchanging at N445.50 on a day that the Monetary Policy Rate, MPR was increased by the apex bank.

GWG.NG reports that the Monetary Policy Committee, MPC of the Central Bank had announced an increase of the Monetary Policy Rate, MPR as a means towards addressing increasing inflation and threats against the value of the naira.

The figure represents a depreciation of 0.03 per cent compared with the N445.38 for which the dollar exchanged on Monday.

The open indicative rate closed at N443.92 to the dollar on Tuesday.

An exchange rate of N447 to the dollar was the highest rate recorded within the day’s trading before the naira settled for the greenback at N445.50.

The naira sold for as low as 431 to the dollar within the days trading.

A total of 74.72 million dollars was traded at the official Investors and Exporters window on Tuesday. (NAN)

GWG.NG reports that Governor Emefiele had at the end of the MPC meeting on Tuesday announced that the increase in the country’s Monetary Policy Rate (MPR) by 100 basis points to 16.5 per cent from 15.5 per cent underlining the fight against inflation and the battle to rescue the naira.

Emefiele, however, said the MPC also decided to hold all other parameters constant.

The Assymetric Corridor of +100/-700 basis points around the MPR was, thus, retained, the Cash Reserve Ratio (CRR) was retained at 32.5 per cent and Liquidity Ratio of 30 per cent was also retained.

With additional reports from NAN

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