The Nigerian naira remained stable at N1,328.67 per dollar on Thursday following the Central Bank of Nigeria's (CBN) decision to cut its benchmark interest rate, as external reserves and market adjustments continued to influence currency dynamics. The currency held steady in the official foreign exchange (FX) market, with the dollar quoted at N1,328.67 compared to N1,328.49 on Wednesday, marking a marginal 18-kobo depreciation. In the parallel market, the naira also stabilized at N1,385 per dollar, narrowing the gap between official and unofficial rates to 4.29% from 4.37% the previous day, according to CBN data.
The Central Bank of Nigeria (CBN) announced the rate cut during its two-day Monetary Policy Committee (MPC) meeting in Abuja, reducing the Monetary Policy Rate (MPR) from 26.5% to 23.0%. The MPC also recalibrated the asymmetric corridor to +50/-300 basis points from +50/-450 basis points, while maintaining the Cash Reserve Ratio (CRR) and liquidity ratio unchanged. Analysts at CardinalStone noted the move aimed to align policy rates with improving macroeconomic conditions while managing inflation risks, citing three months of disinflation despite regional geopolitical tensions.
Activity in the interbank FX market declined significantly, with total turnover dropping 62.05% to $105.95 million on Thursday from $279.18 million on Wednesday. The number of transactions fell by 43.72% to 103 deals, compared to 183 on Wednesday. However, Wednesday’s figures showed improved activity, with total turnover at the Nigerian Foreign Exchange Market (NFEM) rising 5.45% to $732.45 million from $694.58 million on Tuesday, and deals increasing by 5.99% to 389 from 367.
Nigeria’s external reserves, a critical buffer for the naira, reached an 18-year high of $54.83 billion as of September 23, 2026, a 30.02% increase from $42.17 billion in the same period of 2025. CardinalStone analysts attributed this growth to sustained foreign exchange inflows and a current-account surplus, which pushed gross reserves to $54.7 billion and net reserves above $40 billion. These reserves enable the CBN to manage external obligations and stabilize the currency amid global economic pressures.
The MPC’s rate cut coincided with a surge in demand for Open Market Operations (OMO) instruments, with N3 trillion in bids recorded as yields declined. This reflects market participants’ expectations of lower borrowing costs and improved liquidity. Meanwhile, the gas fund secured N1.6 trillion in private investment to support infrastructure projects, signaling continued confidence in Nigeria’s economic recovery efforts.
Public-interest implications of the naira’s stability include reduced inflationary pressures for consumers and businesses, as well as enhanced investor confidence. However, the persistent gap between official and parallel market rates highlights ongoing challenges in currency market efficiency. Analysts emphasized that the CBN’s interventions, combined with robust reserves, are critical to maintaining macroeconomic stability.
The developments underscore the CBN’s dual focus on inflation control and currency support, as outlined in its monetary policy framework. Hope Moses-Ashike, an Associate Editor with BusinessDay Nigeria, noted that the naira’s resilience reflects broader economic adjustments, including improved fiscal management and external financing. Her reporting on Nigeria’s financial system and monetary policy decisions provides critical insights for stakeholders navigating the country’s evolving economic landscape.
The CBN’s actions align with global trends of rate cuts to stimulate growth, though risks remain from geopolitical tensions and global commodity price fluctuations. The MPC’s decision to recalibrate the asymmetric corridor suggests a nuanced approach to interest rate management, balancing inflation control with economic expansion.
As Nigeria continues to navigate these challenges, the interplay between monetary policy, external reserves, and market dynamics will remain central to the nation’s economic trajectory. The stability of the naira, supported by the CBN’s interventions and strong reserves, offers a measure of optimism for businesses and households reliant on foreign exchange markets.
The ongoing efforts to bridge the official and parallel market rates, coupled with sustained FX inflows, highlight the complexity of Nigeria’s currency management. Analysts stress that long-term stability will depend on structural reforms, improved governance, and sustained external financing to bolster confidence in the naira.
The CBN’s recent measures, including the rate cut and corridor adjustments, reflect a strategic response to domestic economic conditions. With external reserves at record levels and inflation trends showing improvement, the central bank’s approach aims to foster a stable environment for investment and growth, ensuring the naira remains a reliable medium of exchange for all Nigerians.