• About Us
  • Advertise
  • Contact Us
  • Privacy Policy
Monday, September 25, 2023
NewsOnline Nigeria
  • Latest Posts
  • Headlines
  • Top Stories
  • Politics
  • Crime Watch
  • Entertainment
  • Education
  • Sports
  • Lifestyle
  • TV Station
No Result
View All Result
  • Latest Posts
  • Headlines
  • Top Stories
  • Politics
  • Crime Watch
  • Entertainment
  • Education
  • Sports
  • Lifestyle
  • TV Station
No Result
View All Result
NewsOnline Nigeria
No Result
View All Result
  • Latest Posts
  • Headlines
  • Top Stories
  • Politics
  • Crime Watch
  • Entertainment
  • Education
  • Sports
  • Lifestyle
  • TV Station

BREAKING: Naira Crashes To Record Low, See New Exchange Rates

exchange at the unofficial market has been on a freefall so far in the year, with FX scarcity being the major cause of the currency depreciation.

by Justice Winner
September 27, 2022
in Economy And Business, Headline
Dollar To Naira Exchange Rate For 22 April 2023

naira

Naira has crashed to a record low, see new exchange rates below.

 

Newsonline reports that the naira crashed to another record low on the black market, trading at an average of N722/$1 on Tuesday morning, from N713/$1 recorded in the previous trading session.

 

This online newspaper understands that the exchange at the unofficial market has been on a freefall so far in the year, with FX scarcity being the major cause of the currency depreciation. The economy continues to suffer from a decline in forex inflow, which has seen the exchange rate hit a record low from global headwinds. 

ALSO:  CBN Raises Monetary Policy Rate To 15.5%

 

READ ALSO

BREAKING: Governor Sanwo-Olu Re-Election Upheld By Lagos Tribunal

BREAKING: Bridge Collapses On Enugu-Port Harcourt Expressway

Russia Places International Criminal Court President on Its Most Wanted List

Lagos Tribunal Strikes Out Jandor, Rhodes Vivour’s Petition Against Sanwo-Olu Victory

In contrast to the beginning of the year, the naira has depreciated by over 21% from N565/$1 recorded as of December 31st, 2022. In the same vein, the margin between the official market and the parallel market has also grown wider, creating more arbitrage. 

The exchange rate closed at N436/$1 at the Investors and Exporters window on Monday, bringing the exchange rate differentials to a record N286/$1. The amount of FX trading at the official window also dipped by 26.4% on Monday to $78.1 million from $106.1 million recorded in the previous trading session. 

 

Meanwhile, the Monetary Policy Committee of the Central Bank of Nigeria has unanimously voted to increase the benchmark interest rate (monetary policy rate) to 15.5% from 14%, being the third hawkish move by the apex bank in 2022 following the rising rate of inflation.

This was disclosed by the Governor of the CBN, Godwin Emefiele, while reading the communique of the monetary policy committee meeting of the year, on Tuesday 27th September 2022.

The Central Bank during its last MPC meeting had increased the interest rate from 11.5% to 14% in the last two meetings, however with the inflation rate still spiking above 20%, the CBN has raised the rate further to 15.5% in a bid to combat the rising cost of goods and services.

Similarly, Nigeria’s inflation rate touched a new 14-year high in August 2022 at 20.52% from 19.64% recorded in the previous month, largely due to the depreciation of the naira against the US dollar. It is worth noting that the downturn of the local currency is not unique to Nigeria as it is also affecting other economies of the world. 

 

Earlier in the week, the Pound fell to a record low against the US dollar, following the UK’s biggest tax cuts in 50 years, while rising interest rates continue to steer worries of an economic downturn. In the same vein, Ghana’s Cedi continues to fall against the US dollar as the inflation rate pushes stronger. 

A major concern of the monetary policy committee will be the rate at which the local currency is falling on the black market, despite efforts to manage the volatility at the official window. 

What experts are saying 

Experts had predicted that the CBN may be compelled to hold the interest rate due to the nature of Nigeria’s inflationary pressure and its multiple hikes in May and July 2022. Dr. Muda Yusuf, the CEO, of the Centre for the Promotion of Private Enterprise (CPPE), maintained that the rates would be held constant. He said “we cannot have a tightening policy in an economy grappling with fragile growth and high unemployment. But the credit conditions are already very tight.  Cash Reserve Requirement CRR is at 27.5 percent, one of the highest globally. 

Effective CRR for some banks is about 50% or even more. The liquidity Ratio is 30%, MPR is 14%. These restraining thresholds are already on the high side.  Financial intermediation is already being considerably impeded. “ 

Also, Ezekiel Gomos, an economist at Jos Business School maintained that the CBN could hold the monetary parameters constant, considering that the nature of Nigeria’s inflation cannot be easily tamed by monetary policies. 

Ordinarily, inflation can be tamed by interest rate, however, this is not necessarily the case with Nigeria, due to the huge size of the informal sector. A significant portion of the people are not captured in the financial system,” he said. 

Previous Post

BREAKING: CBN Mops Up Liquidity From Banks

Next Post

US Court Sentences Governor Abiodun’s Aide To 5 Years Imprisonment

Justice Winner

Justice Winner

Justice Winner is a Veteran Nigerian Journalist With Expertise in Writing Nigeria News, Entertainment and Politics. He has a degree in Journalism/Mass Communication Studies. Justice is a dedicated and talented writer committed to producing high-quality content that is authoritative, informative, entertaining, and engaging. Connect with Him on Instagram , Facebook, Twitter, and LinkedIn.

Related Posts

Governor Sanwo-Olu
Headline

BREAKING: Governor Sanwo-Olu Re-Election Upheld By Lagos Tribunal

Enugu-Port Harcourt Expressway
Headline

BREAKING: Bridge Collapses On Enugu-Port Harcourt Expressway

International Criminal Court President
Headline

Russia Places International Criminal Court President on Its Most Wanted List

Next Post
US Court

US Court Sentences Governor Abiodun’s Aide To 5 Years Imprisonment

Trending Posts

Mike Adenuga

Mike Adenuga In Spotlight Over $260 Million Debt, Bribery Allegations

Naira

Black Market Dollar To Naira Today, 24 September 2023 In Lagos & Abuja

Tinubu

Tinubu Government Launches NATEP Youth Employment Programme

APC Forum

APC Forum Warns Wike Against Actions Inimical To Party, Region’s Interests

Akwa Ibom Governor Eno

Akwa Ibom Governor Eno Under Pressure To Share Money Or Risk Second Term

NLC

BREAKING: NLC Speaks On Commencing Nationwide Indefinite Strike

Enugu-Port Harcourt Expressway

BREAKING: Bridge Collapses On Enugu-Port Harcourt Expressway

Naira

Black Market Dollar To Naira Today, 25 September 2023 In Lagos & Abuja

Tony Elumelu

Tony Elumelu Expresses Confidence In Naira Stability Amid CBN Leadership Change

CBN PVS Portal

How To Register And Submit Applications On CBN PVS Portal

ADVERTISEMENT

ABOUT US

NewsOnline Nigeria is Nigeria’s fastest growing trusted independent online newspaper covering Africa’s socio-economic issues, trades and investments; it provides informed perspectives on economic and political events in Nigeria and Africa at large.

Relevant Pages

  • About Us
  • Advertise
  • Contact Us
  • Privacy Policy

Reach Us

6th Avenue, Festac Town, Lagos

+234 816 184 6326

[email protected]

Alert Us

Important Press Releases, Breaking Stories, Special Investigations: [email protected]

Copyright © 2023 Newsonline Nigeria

No Result
View All Result
  • Latest Posts
  • Headlines
  • Top Stories
  • Politics
  • Crime Watch
  • Entertainment
  • Education
  • Sports
  • Lifestyle
  • TV Station

Copyright © 2023 Newsonline Nigeria