Naira Maintains Momentum, Trades Under ₦1,450/$1 Following CBN’s MPR Retention
The Nigerian naira continued its upward trend this week, consistently trading below ₦1,450 to the U.S. dollar after Central Bank of Nigeria (CBN) opted to hold its Monetary Policy Rate (MPR) at 27 percent.
With the MPR unchanged, the CBN signaled its commitment to consolidating recent gains in inflation control and foreign exchange stability.
Recent improvements in dollar supply have also helped sentiment, with stronger inflows from remittances, corporate transactions, and portfolio investments supporting market liquidity.
The steady official exchange rate — around ₦1,450 in the formal Nigerian Foreign Exchange Market — reflects growing confidence, even as the parallel market continues to see slightly higher quotes.
Market watchers say the decision to maintain a tight monetary policy, even in the face of falling inflation, underscores CBN’s caution and its focus on long-term macroeconomic stability.
The improved external reserves — recently boosted by rising foreign-exchange inflows, among other factors — have also lent support to the naira’s gradual recovery.
While global uncertainties and import-related demand still pose risks, the market has experienced fewer sharp swings, creating room for a more orderly trading pattern.
For households and firms, the naira’s calmer performance offers some short-term relief, especially for sectors sensitive to exchange rate volatility. However, the high interest-rate environment continues to weigh on credit expansion, meaning many businesses must navigate rising costs even as FX conditions show signs of improvement.
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