Naira Holds at ₦1,328 After CBN Rate Cut
The naira remained broadly stable at ₦1,328.67 per dollar in Nigeria’s official foreign exchange market on Thursday, despite the Central Bank of Nigeria’s recent reduction in its benchmark interest rate.
Data from the CBN showed that the naira weakened marginally by 18 kobo from ₦1,328.49 per dollar recorded on Wednesday at the Nigerian Foreign Exchange Market (NFEM).
In the parallel market, the naira also held at around ₦1,385 per dollar. The difference between the official and parallel market rates narrowed slightly to ₦57, representing 4.29 percent, compared with ₦58, or 4.37 percent, previously.
FX market activity declines
Trading activity in the interbank segment of the foreign exchange market fell significantly on Thursday.
Total turnover dropped by 62.05 percent to $105.95 million from $279.18 million recorded on Wednesday.
The number of deals also declined from 183 to 103, representing a 43.72 percent decrease.
At the NFEM window, however, activity had increased on Wednesday. Total turnover rose by 5.45 percent to $732.45 million from $694.58 million recorded on Tuesday.
The number of deals also increased by 5.99 percent, rising from 367 to 389.
External reserves reach 18-year high
Nigeria’s external reserves continued to strengthen, reaching $54.83 billion as of September 23, according to CBN data.
The figure represents a 30.02 percent increase compared with the $42.17 billion recorded during the corresponding period in 2025.
The rise in reserves provides the CBN with a larger buffer to meet external obligations and support stability in the foreign exchange market.
Analysts at CardinalStone attributed the improvement to sustained foreign exchange inflows from domestic and international sources, alongside a current-account surplus.
The analysts said the factors had pushed gross reserves to $54.7 billion and net reserves above $40 billion.
“For context, despite the geopolitical tensions in the Middle East, Nigeria has seen three months of disinflation, with the naira’s positive performance playing a supportive role,” the analysts said.
CBN cuts interest rate
The Monetary Policy Committee reduced the Monetary Policy Rate (MPR) from 26.5 percent to 23 percent following its two-day meeting in Abuja.
The committee also adjusted the asymmetric corridor to +50/-300 basis points from +50/-450 basis points.
However, the Cash Reserve Ratio (CRR) and liquidity ratio requirements were left unchanged.
The committee said the decision reflected improving macroeconomic conditions while maintaining attention on inflation risks.
Despite the rate cut, the naira remained relatively stable in the official market, while rising external reserves and foreign exchange inflows continued to provide support for the currency.
