The Naira posted a stronger performance this week at the official foreign exchange window, trading below the N1,450/$1 threshold for four consecutive days, a notable shift from last week’s steep pressures that pushed the currency consistently above that mark.
Daily figures released by the Central Bank of Nigeria (CBN) indicate a modest but steady appreciation of the Naira throughout the week.
The currency opened on Monday at N1,452/$1 before strengthening progressively as the week advanced.
By Tuesday, it had improved slightly to N1,441/$1 and continued this upward trend on Wednesday at N1,442/$1.
The gains were sustained on Thursday with a rate of N1,445.9/$1, and by Friday, the Naira closed at N1,446.9/$1, showing a consistent recovery over the five-day trading period.
Week-on-Week Performance
This week’s trend marks a clear improvement compared to the previous trading week, which was one of the Naira’s toughest in recent months.
Last week, the currency struggled, staying above N1,450/$1 throughout the week—a rally last witnessed in October.
According to the CBN’s published data for the previous week, the Naira faced significant pressure, closing well above the N1,450/$1 mark on most trading days.
It opened the week on Monday at N1,447/$1 but quickly slipped, ending Tuesday at N1,458/$1. The currency saw a slight recovery on Wednesday with a closing rate of N1,451/$1, only to weaken again on Thursday to N1,459.95/$1. By Friday, the Naira settled at N1,458/$1, rounding off what was one of its most challenging trading weeks in recent months.
This week ultimately ended at N1,446.9/$1, representing a noticeable firming against last week’s closing figure of N1,458/$1.
MPC Meeting Resolutions
The Monetary Policy Committee concluded its 303rd meeting during the week with a unanimous decision to maintain all key policy indicators, signalling the apex bank’s commitment to stabilizing prices and sustaining recent gains in the foreign exchange market.
The committee retained the Monetary Policy Rate (MPR) at 27%, the highest level in recent history. The elevated MPR—which influences lending rates across the country—forms a central part of the CBN’s strategy to curb inflation, attract foreign investment, and dampen currency volatility.
Other policy parameters were also left unchanged:
Cash Reserve Ratio (CRR):
- 45% for Deposit Money Banks
- 16% for Merchant Banks
Liquidity Ratio (LR): 30%
- Asymmetric Corridor: Adjusted to +50/-450 basis points around the MPR to strengthen control over short-term interest rate movements.
The MPC said the decision reflects the need to consolidate disinflation after headline inflation fell to 16.05% in October from 18.02% in September. Food inflation slid to 13.12% while core inflation eased to 18.69%.
The committee linked the decline to tight monetary policy, a more stable exchange rate, improved food supply and a surplus current account.
CBN Governor Olayemi Cardoso noted that maintaining the restrictive stance was necessary to consolidate ongoing gains in the foreign exchange market.
He explained that the current policy environment is designed to attract foreign inflows, improve market transparency, and support the broader economic reform agenda.
