CBN adjusts forex peg as naira hits N228 per dollar

CBN Governor, Mr. Godwin Emefiele

The Central Bank of Nigeria on Tuesday lowered the naira peg to 196.95 against the dollar from 196.90 it set last week.

This made it the fourth time the CBN had adjusted the peg since it was introduced in February, Reuters reported.

This happened just as the naira tumbled further to 228 against the dollar at the parallel market on Tuesday from 265 on Monday.

Reuters reported that the yield on the Federal Government’s 2024 bond in the JP Morgan Government Bond Index rose by 40 basis point to 14.74 per cent.

Naira Faces Fresh Pressure, Falls To 222 Per Dollar

The naira, which rose to 180 against the dollar shortly after the inauguration of President Muhammadu Buhari about a month ago, has fallen to 222 at the parallel market due to a huge demand for dollars by importers and investors.

Increasing business activities have made importers and investors to move their foreign exchange demands to the parallel market, putting pressure on the naira at the segment, it was learnt on Tuesday.

The dollar was sold for between 220 and 222 on the streets of Lagos, Abuja and Kano on Tuesday, while the pounds and euro were sold for 350 and 249, respectively.