Naira dwindles to 240 after MPC meeting

Less than 24 hours after the last 2015 meeting of the Central Bank of Nigeria Monetary Policy Committee (MPC), the naira dwindled to 240 against the dollar.

The Nigerian currency was said to have traded at N240 against the greenback, after gaining N1 on Wednesday afternoon, stronger than its Tuesday exchange value of N241.

According to NAN, the interbank window remained at N197 to the dollar, following CBN’s strict peg at controlling the official rates.

Traders at the market were optimistic that the sale of forex by the apex bank would boost activities at the market.

On Tuesday, Godwin Emefiele, governor of the Central Bank, frowned at the continued patronage of forex traders at the parallel market.

He urged genuine forex buyers to use the Bureau de Change (BDCs) and other authorised sources for forex, adding that their rates were far better than what obtained at the parallel market.

Experts expected the CBN to shift grounds on its foreign exchange policy, which they believe, has been hurting some economic activitie.

But the bank has maintained its position.

The CBN monetary policy cut benchmark lending rates by two percent, from 13 percent to 11 percent, easing over N700 billion for lending by commercial banks.

The naira has depreciated over 30 percent in the past 12 months.