The naira continued its upward momentum on Tuesday, appreciating to N1,625 per dollar in the parallel market—an improvement from Monday’s closing rate of N1,627/$1, according to data obtained by Nairametrics from forex traders in Lagos.
This marks the second straight day of positive movement for the Nigerian currency in the informal market this week.
In the official window, data from the Central Bank of Nigeria (CBN) indicated that the naira closed stronger at N1,588.50/$1 on Tuesday, following a Monday close of N1,597/$1—showing marginal but steady gains ahead of the critical 300th Monetary Policy Committee (MPC) meeting.
The currency traded within a range during intra-day activities, hitting a high of N1,601.5/$1 and a low of N1,580/$1, reflecting continued volatility despite overall gains.
At a press briefing in Abuja following the MPC session, CBN Governor Olayemi Cardoso revealed a sharp decline in foreign exchange volatility, noting that it has now dropped to under 0.5%, compared to over 4% a year earlier.
“This reduced volatility indicates improved currency stability, which is a direct result of our ongoing reforms,” Cardoso explained. He credited the progress to a blend of orthodox monetary policies, transparency in CBN operations, and consistent policy execution.
Among the core reforms credited for these improvements are the liberalisation of the FX market, exchange rate unification, and a shift toward market-driven supply measures. Cardoso remarked that these efforts are now producing tangible results.
On external reserves, the CBN chief announced a significant surge. “Nigeria’s net external reserves have grown from just over $3 billion to approximately $23 billion. This leap reflects renewed investor confidence and improved fiscal transparency,” he said.
The apex bank has resumed regular updates of both gross and net reserves to increase market trust and deter speculative trading. Gross reserves, currently hovering around $33–34 billion, are expected to rise further due to increased oil revenues, decreased fuel importation, and stronger non-oil export performance—especially in natural gas.
In a unanimous decision during its milestone MPC session, the committee resolved to retain all key monetary policy rates:
- Monetary Policy Rate (MPR): 27.5%
- Asymmetric Corridor: +500/-100 basis points
- Cash Reserve Ratio (CRR): 50% for Deposit Money Banks, 16% for Merchant Banks
- Liquidity Ratio: 30%
All 12 committee members supported maintaining the current policy stance, reflecting consensus on the need for economic stability.
