The Nigerian currency, the naira, depreciated slightly in the official foreign exchange market on Wednesday, November 27, 2024, the day after the Central Bank of Nigeria (CBN) increased the monetary policy rate (MPR) by 25 basis points to 27.50%.
At the close of trading on Wednesday, November 27, 2024, the Nigerian currency depreciated marginally by 0.08% to trade at N1,659.44, down from the N1,650 it had traded the previous day.
In the parallel segment of the foreign exchange market, the naira steadied at N1,750 per dollar, up from the N1,770 of the previous day.
The value of the naira has remained unchanged despite the interest rates by the CBN.
According to FMDQ data, the FX market experienced lower demand, and FX supply declined by 20.9% to $337.07 million on Wednesday, November 27, 2024, in the official Nigerian Foreign Exchange Market (NAFEM).
With the current rate, the nairaâs value has declined by 40.4% yearly from N988.46 in January, according to FMDQ data.
TimesNow.com.ng earlier reported that Bismarck Rewane, the CEO of Financial Derivatives Company, predicted that the naira would depreciate by 36.50% yearly.
He said that inflation will cool, saying that it moderate at 16.2% by 2026.
Analysts have said that the predictions of further naira depreciation might occur unless the CBN defends the local currency.
She disclosed that the several predictions of the nairaâs depreciation can only happen if the CBN refuses to intervene.
TimesNow.com.ng earlier reported that the CBN issued a directive on Tuesday, November 26, 2024, mandating all banks in the interbank FX market to move to the Bloomberg BMatch system for forex trading.
The apex bank said the implementation will begin on December 2, 2024, and is designed to boost operational efficiency and transparency of Nigeriaâs forex system.
In the circular seen by TimesNow.com.ng, CBN said the BMatch platform provides an automated system for matching trades, boosting market integrity and facilitating better price discovery.
Proofread by Kola Muhammed, journalist and copyeditor at TimesNow.com.ng
Source: TimesNow.com.ng
