Market News

The apex bank said the decision to hold rates steady was influenced by persistent inflationary pressures and the need to sustain macroeconomic stability.

The Naira steadied against the United States Dollar early Thursday in the official window for formal trade, the Nigerian Foreign Exchange Market (NFEM), after the Monetary Policy Committee (MPC) of the Central Bank of Nigeria voted to retain the Monetary Policy Rate (MPR) at 26.5%.

The CBN’s decision followed its 305th meeting on May 19 and 20, which recorded the attendance of 11 members.

Data from the opening sessions on May 21, 2026, showed the Naira trading at 1,371.25 per US Dollar.

Thursday morning’s performance follows closely on the heels of recent trading sessions handled by the CBN, where daily averages hovered around 1,373 Naira. 

Liquidity levels inside the official window have remained active, backed by consistent interbank turnovers that have kept the spot rate locked within a narrow, predictable boundary over the past week.

Traders indicate that supply interventions and steady transaction matching have prevented any sharp morning volatility.

The Governor of the Central Bank, Olayemi Cardoso, who spoke at the end of the committee two day meeting on May 19 and 20, said the committee retained the Standing Facilities Corridor around the MPR at +50/-450 basis points.

The committee maintained all key policy parameters at their current levels, signalling a continued cautious stance on inflation management and broader macroeconomic stability.

The CBN said the decision to hold rates steady was influenced by persistent inflationary pressures and the need to sustain macroeconomic stability.

With the Monetary Policy Rate sustained at 26.5 percent, the broader economic framework continues to favor a defensive stance for the local currency, maintaining tight control over liquidity to preserve the stability observed on both sides of the market.