The Naira closed November on a slightly weaker note, continuing the pattern of volatility that has defined the foreign exchange market in recent months.
The naira traded at N1,446.9/$1 on November 28, compared to N1,438/$1 at the opening of the month.
This marks a depreciation from N1,427.5/$1 recorded on October 31, demonstrating the currency’s fragile stability despite aggressive monetary tightening by the Central Bank of Nigeria (CBN).
November recorded only a brief spell of elevated exchange rates above the N1,450/$1 threshold, lasting five consecutive days.
During this period, the naira traded at N1,452 to the dollar on November 24, N1,458 on November 21, N1,459.95 on November 20, N1,451 on November 19, and N1,458 on November 18.
This short-lived surge contrasts sharply with the prolonged pressure seen in October, when the currency remained above the N1,450/$1 mark for 18 straight days, reflecting a deeper and more sustained phase of instability in the foreign exchange market.
Comparison to October
October experienced a much deeper level of depreciation, with the naira repeatedly trading between N1,460 and N1,474 to the dollar, and reaching its monthly peak of N1,474 on October 16.
Throughout the month, the currency fluctuated widely: it stood at N1,431 on October 30, rose to N1,452.5 on October 27, N1,455.5 on October 24, and N1,461 on October 23.
It continued its upward climb with readings of N1,462 on October 22, N1,464.5 on October 21, and N1,464 on October 20. Mid-month figures showed sustained pressure, with the naira at N1,471 on October 17, the high of N1,474 on October 16, followed closely by N1,472.5 on October 15 and N1,467.01 on October 14.
Earlier in the month, the currency traded at N1,460 on October 13, N1,458 on October 10, N1,464 on October 9, and N1,469 on October 8. It also touched N1,472 on October 7, N1,464 on October 6, N1,469 on October 3, and N1,464.85 on October 2.
This long stretch of elevated rates reflected intense pressure driven by high import demand, speculative positioning by market players, and inconsistent foreign exchange supply to official market channels.
CBN holds monetary policy indicators amid ongoing FX pressures
A major highlight of November was the 303rd Monetary Policy Committee (MPC) meeting held on November 24–25 in Abuja. At the meeting, the CBN maintained all key policy rates, reaffirming its commitment to price stability and foreign exchange market recovery.
Key Decisions from the MPC
- Monetary Policy Rate (MPR): 27%
- Cash Reserve Ratio (CRR):
- 45% for Deposit Money Banks
- 16% for Merchant Banks
- Liquidity Ratio: 30%
- Asymmetric Corridor: +50/-450 basis points around the MPR
The MPC explained that holding these parameters steady was essential to consolidate disinflation, after headline inflation eased to 16.05% in October, down from 18.02% in September.
What you should know
Last week, CBN said it is finalising a revised foreign exchange (FX) manual that will soon be released as part of broader efforts to deepen market participation, improve transparency and reinforce confidence in the naira.
CBN Governor, Olayemi Cardoso, announced this at the annual Bankers’ Dinner organised by the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos.
According to Cardoso, the revised manual is expected to set clearer rules, strengthen documentation processes, expand participation, and enhance surveillance across the electronic FX management system.
