Naira slides again as CBN maintains 27.5% interest rate

|By Adejumo Adekunle

The Nigerian naira continued its downward trend against the United States dollar at the official foreign exchange market on Tuesday, despite the Central Bank of Nigeria (CBN) holding its benchmark interest rate steady at 27.5 percent.

Data published on the CBN’s official platform revealed that the naira depreciated to N1,535.24 per dollar, slipping from N1,532.54 recorded on Monday. This represents a day-to-day loss of N2.70, deepening concerns over the naira’s resilience in the face of ongoing economic headwinds.

In contrast, the parallel market rate held firm at N1,540 per dollar, marking the second consecutive day of stability in that informal market segment.

The currency’s latest fall coincided with the conclusion of the 301st Monetary Policy Committee (MPC) meeting of the apex bank, where Governor Olayemi Cardoso announced the retention of the 27.5 percent interest rate, a move aimed at stabilizing inflation and bolstering investor confidence.

Despite the weakening naira, Cardoso remained optimistic, stating that “Nigerians now have greater confidence in the naira,” a remark that may signal long-term expectations of stability, even as short-term volatility persists.

This marks the second depreciation of the naira at the official window within the week, intensifying scrutiny on the effectiveness of current monetary policies.