Naira gains further by 0.5% after CBN retains interest rate

The naira on Tuesday appreciated further in the official foreign exchange (FX) market, on the same day the Central Bank of Nigeria (CBN) maintained its benchmark interest rate, known as the Monetary Policy Rate (MPR), at 27^.

Data published by the CBN showed that the naira gained 0.5% as the dollar was quoted at N1,446.31, compared with N1,453.84 on the previous trading day at the Nigerian Foreign Exchange Market (NFEM).

In the parallel market, commonly referred to as the black market, the naira closed steady at N1,460 per dollar, reflecting improved sentiment across FX segments.

This positive movement comes after the naira weakened across both the official and parallel market segments last week. In the official window, the currency fell by 0.98% week-on-week, closing at N1,456.72 per dollar. Similarly, the parallel market rate depreciated by 1.02 percent week-on-week to settle at N1,465 per dollar. As a result, the premium between both markets widened slightly to N8.28 per dollar, up from N7.57 per dollar recorded the previous week, highlighting growing demand pressures and uneven liquidity conditions.

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A report by Coronation Merchant Bank Research showed that foreign exchange inflows through the NFEM moderated to US$512.20 million, down from US$672.30 million recorded in the previous week. Foreign Portfolio Investors (FPIs) were the biggest contributors, accounting for 38.77% of inflows at US$198.57 million. Exporters followed with 32.90%, while Non-bank corporates contributed 14.89%. Individuals accounted for 9.68%, with other sources making up the remaining 3.76%.

Despite the slowdown in inflows, Nigeria’s external reserves recorded improvement, rising by 1.26% week-on-week, or US$548.97 million, to US$44.19 billion as of November 20, 2025. The report attributed the increase to stronger inflows and limited outflows during the period. Analysts at Coronation stated that they expect the exchange rate to remain within a similar band below the N1,500 mark, supported by steady liquidity conditions and continued CBN intervention in the FX market.

Meanwhile, the CBN surprised many market watchers by keeping the Monetary Policy Rate unchanged at 27% during Tuesday’s Monetary Policy Committee meeting. The apex bank stated that the decision was aimed at consolidating progress in achieving lower and more stable inflation, even as market participants monitored the impact of recent policy adjustments on liquidity and exchange rate dynamics.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.