After CBN's Suspension of MPC Meeting, Naira Tumbles Over N1,000 Per Dollar

After CBN's Suspension of MPC Meeting, Naira Tumbles Over N1,000 Per Dollar

  • The naira fell yesterday, Thursday, after the announcement that MPC was postponed
  • According to findings, the naira fell to a record low of N1,050 per dollar on the black market
  • Meanwhile, a report had earlier stated that the naira would continue to fall

In response to worries about postponing the Monetary Policy Committee meeting, the naira continued its wild plunge on Thursday, falling to a record low of 1,050 per dollar on the black market.

As demand for dollars surpassed supply, the naira, which last traded at 980/$ on Wednesday, sank even more.

Naira value
The naira fell crossing N1,000 per dollar after the announcement that MPC was postponed. Photo Credit: Anderson Ros Photography Inc, Yemi Cardoso
Source: UGC

A currency dealer in Wuse, a suburb of the nation's capital, named Yahaya Adamu, claims that traders in Abuja valued the dollar at N998 on Thursday, BusinessDay report.

According to Umar Salisu, a foreign exchange operator in Lagos, the dollar was exchanged there roughly 990 times.

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Another report highlights that the dollar sold higher in Lagos, where it traded for N1000. In Abuja and Port Harcourt, the dollar price was N980/$1, while it sold for N965/$1 in Kano.

Meanwhile, the naira closed at N738 on Thursday, September 21st, 2023, on the official I & E window.

CBN suspends MPC meeting had earlier reported that the CBN suspended its monetary policy meeting indefinitely as Femi Cardoso waited in the wing to be confirmed by the senate as the new governor.

The postponement was disclosed in a statement published on the CBN Website and signed by Isa AbdulMumin, Director of Corporate Communications.

This marks the second time the CBN has postponed its MPC meeting.

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The last time the meeting was postponed was in January 2020, when it was moved from January 20-21 to January 23-24.

The statement announcing the latest postponement reads:

"The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has deferred its 293rd meeting scheduled for Monday and Tuesday, September 25 and 26, 2023, respectively.
"A new date will be communicated in due course. We regret any inconvenience this change may cause our stakeholders and the general public."

What analysts say about this

A statistics and intelligence organisation, Stears Africa FX Monitor earlier forecast further naira volatility.

Fiscal policies, international trade, and market movements, such as inflation, interest rates, political developments, and geopolitical issues, were cited by the corporation as important influences on the performance of the naira.

Stears' head of insights, Fadekemi Abiru, voiced worry about the naira's volatility. She said prompt and informed decision-making is crucial for businesses and investors in Nigeria due to the naira's persistent uncertainty.

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The Nigerian naira has hit a record low of N980 per dollar amid rising demand for dollars in the black market, reported.

The naira fell as demand for dollars by importers and international students surged.

The local currency depreciated by 0.34% at the Investors and Exporters (I&E) window, trading at N776.60 per dollar on Tuesday, September 19, 2023, as against the N773.98 traded on Monday, September 18, 2023, according to data from FMDQ.


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