On Wednesday, May 22, the naira strengthened slightly against the US dollar in the foreign exchange market.
The local currency moved up against the dollar from N1465.68 on Tuesday to N1462.59 on Wednesday, according to FMDQ data.
This represents a N3.09 per dollar gain within 24 hours compared to its closing rate on Tuesday.
Since last Friday, Nigeria’s currency has increased four times in a row after concerns that the local currency may be headed to its lowest at N1,900 per dollar.
In the unofficial market, however, the naira remained unchanged and retained its N1450 per dollar trading rate.
The benchmark interest rate, known as the monetary policy rate (MPR), was recently raised to 26.25% by the Monetary Policy Committee (MPC) of the Central Bank of Nigeria.
The new rate is 150 basis points higher than the 24.75% rate that was in place previously.
Following the 295th MPC meeting in Abuja on Tuesday, May 21, 2024, Olayemi Cardoso, the Governor of the CBN and Chairman of the MPC, revealed the new rate.
The CBN said that the Asymmetric Corridor surrounding the MPR was set at +100 and –300 basis points and that it would maintain the Cash Reserve Ratio (CRR) of Deposit Money Banks (DMBs) at 45%.
This new rate is an indication of further tightening to curb the excess supply of money in circulation.
TimesNow.com.ng reported that the controversial 0.5% cybersecurity fee that banks were ordered to impose on electronic transactions has been withdrawn by the CBN.
Chibuzo Efobi, the director of the payment system management department, and Haruna Mustafa, the director of the financial policy and regulation department, signed a statement announcing the circular’s withdrawal.
In its circular dated May 6, 2024, the apex bank instructed the levy deduction to be sent to the Office of the National Security Adviser (ONSA)- managed National Cybersecurity Fund (NCF).
Source: TimesNow.com.ng
