The naira weakened to N1,586/$1 in the official market on Thursday, marking the first depreciation since the Central Bank of Nigeria’s (CBN) 300th Monetary Policy Committee (MPC) meeting held earlier in the week.
This is according to data published on the CBN’s official website.
Prior to Thursday’s dip, the naira had recorded a three-day streak of appreciation, trading at N1,597/$1 on Monday, N1,588.5/$1 on Tuesday, and N1,583/$1 on Wednesday.
Data from the CBN shows that intra-day trading on Thursday saw the naira fluctuate between a high of N1,588.5/$1 and a low of N1,582/$1, with an average rate of N1,584.99/$1.
In terms of other major currencies, the naira exchanged at N2,127.96/£1 on Thursday, slightly weaker than Wednesday’s rate of N2,126.23/£1. Against the euro, it traded at N1,791.95/€1 compared to N1,795.07/€1 the previous day.
Parallel market holds strong
The story was different in the parallel market, where the naira appreciated to N1,620/$1 on Thursday, up from N1,625/$1 on Wednesday—the same level it held on Tuesday. It had earlier closed at N1,627/$1 on Monday, according to market sources in Lagos.
For other foreign currencies in the parallel market, the naira gained against the pound sterling, closing at N2,135.00/£1 on Thursday—an improvement from N2,155.00/£1 on Wednesday and N2,145.00/£1 on Tuesday. It had opened the week at N2,142.00/£1. However, against the euro, the naira slipped to N1,835/€1 on Thursday, down from N1,820/€1 on both Monday and Wednesday, though slightly up from Tuesday’s N1,825/€1.
Analysts attribute the recent pressures on the naira to seasonal demand for foreign exchange, as affluent Nigerians typically purchase dollars for travel, international school fees, and Hajj pilgrimage-related expenses.
CBN remains optimistic
Despite these fluctuations, CBN Governor Olayemi Cardoso remains optimistic. Speaking after the MPC meeting on Tuesday, he noted that monetary policy reforms are beginning to bear fruit, with the naira showing signs of recovery.
Cardoso highlighted that rising external reserves—now estimated at about $23 billion, up from just over $3 billion in net usable assets—reflect renewed investor confidence and the re-entry of previously sidelined market participants. He emphasized that the naira is gradually stabilizing, currently trading between N1,590/$1 and N1,610/$1 in 2025.
What you should know
At its 300th Monetary Policy Committee (MPC) meeting held in Abuja, the CBN took the decision to retain MPR at 27.5%. The Committee also maintained the Asymmetric Corridor at +500/-100 basis points around the MPR.
The Cash Reserve Ratio (CRR) was held at 50% for Deposit Money Banks and 16% for Merchant Banks, and the Liquidity Ratio was left unchanged at 30%.