The naira depreciated steadily in the official market throughout the week, coinciding with the 304th Monetary Policy Committee (MPC) meeting of the Central Bank of Nigeria.
According to Nairametrics’ review of official market data published on the CBN website, the naira opened the week on Monday at N1,353.5/$ and depreciated steadily in subsequent trading sessions, closing the week at N1,368.5/$.
The movement followed the conclusion of the 304th MPC meeting and contrasts with mixed reactions recorded after previous policy decisions.
Market liquidity conditions and investor expectations have continued to influence the direction of the exchange rate in the aftermath of MPC meetings.
What the data is saying
The naira’s performance during the week reflects a consistent weakening pattern across all five trading sessions.
- It slipped to N1,359/$ on Tuesday immediately after the conclusion of the 304th MPC meeting and extended losses through Friday.
- The currency opened at N1,353.5/$ on Monday and closed at N1,359/$ on Tuesday.
- It weakened further to N1,359.5/$ on Wednesday and N1,361.5/$ on Thursday.
- By Friday, the exchange rate had depreciated to N1,368.5/$, marking the weakest level for the week.
This represents a sustained downward movement in the official market over the period under review.
Get up to speed
The naira’s reaction to the 304th MPC meeting differs from movements recorded after earlier policy meetings. In previous instances, the direction of the currency varied depending on prevailing market conditions.
- After the 303rd MPC meeting, the naira appreciated to N1,441/$.
- Ahead of that November meeting, the currency had strengthened to N1,452/$ from N1,458/$.
- In contrast, following the 302nd MPC meeting, the naira weakened to N1,493.2/$ from N1,491.49/$ recorded prior to the decision.
These historical movements highlight the inconsistent post-MPC exchange rate outcomes, largely shaped by liquidity dynamics and market sentiment at the time.
More Insights
A comparison with the previous week shows that exchange rate pressures have persisted beyond a single trading cycle.
- The naira had also recorded a largely depreciating trend in the week preceding the MPC meeting.
- Last week, the currency moved from N1,344/$ on Monday to N1,337/$ on Tuesday.
- It weakened to N1,340/$ on Wednesday and N1,346/$ on Thursday.
- By Friday, it closed at N1,348/$.
The pattern suggests that the recent depreciation is part of a broader trend rather than a one-off reaction to the latest policy decision.
What you should know
During the week, MPC announced a 50 basis points rate cut to 26.5% from 27%.
- The MPC retained the Cash Reserve Ratio at 45.0 per cent for commercial banks and 16.0 per cent for merchant banks, maintained the Liquidity Ratio at 30.0 per cent, and fixed the Standing Facilities Corridor at +50/-450 basis points around the MPR.
- Despite the continued pressure on the exchange rate, Nigeria’s external buffer position has strengthened. Governor Olayemi Cardoso disclosed that the country’s gross external reserves rose to $50.45 billion as of February 16, 2026.
The $50.45 billion reserve level is the highest recorded in 13 years.
