Market News
Naira gains further by 0.5% after CBN retains interest rate - BUSINESSDAY
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.
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.
