Naira Leaps to N322.85/$1 At Interbank Market

The naira appreciated to N322.85 to a dollar at the interbank market on Thursday, July 28, stronger than the N330.12 to a dollar it had closed on Wednesday, July 27.

However, the parallel market rate of the naira remained unchanged on Thursday as it closed at N378 to a dollar, same as Wednesday.

The Central Bank of Nigeria, CBN, in a bid to curb inflation, thad on Tuesday raised the Monetary Policy Rate (MPR), otherwise known as interest rate, by 200 basis points to 14 percent from 12 percent.

It also assured Nigerians of the stability of the banking sector, saying whilst it was poised to deal ruthlessly with any misdemeanour and malpractice, the recent removal of some banks chiefs was not a sign of distress.

It also left Cash Reserve Ratio (CRR) and Liquidity Ratio (LR) unchanged at 22.50 per cent and 30 per cent respectively as well as retained the Asymmetric Window at +200 and -500 basis points around the MPR.

A former Chief Executive Officer of Diamond Bank Plc, Mr. Emeka Onwuka, had on Wednesday welcomed the liberalisation of the forex market.

He said: “Hopefully the rates at which the market will settle will ultimately result in improve liquidity in the forex market.”

He had argued that it may be necessary to place a one year minimum tenor on repatriation of all CCI (Certificate of Capital Importation) transactions to discourage entry of hot money. He urged Nigerians to support the CBN for the forex market to settle and achieve the desired objectives of the new regime.