Naira appreciates to N1,486.80/$1 at offical market
The naira appreciated on Wednesday, closing at N1,486.80 per dollar in the official market from N1,493.2 per dollar it closed for trading on Tuesday.
This happened a day after the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) concluded the 302nd meeting in Abuja.
According to data published on the CBN website on Tuesday, the latest figure represents a slight appreciaition from N1,488/$1 on Friday.
However, the Nigeria’s external reserves climbed to $42.03 billion, marking the highest level since late September 2019 and setting a six-year (72-month) peak.
The latest data from CBN show reserves at $42.03 billion, up from $41.99 billion the previous day and well above $41.42 billion at the start of September.
The buildup is not a one-off spike. Throughout September, every recorded session has shown an increase, delivering 13 consecutive daily gains across 14 reporting days.
On Tuesday, the MPC reduced the Monetary Policy Rate (MPR) by 50 basis points, lowering it from 27.5 per cent to 27 per cent.
The decision was announced by CBN Governor, Olayemi Cardoso, during the post-MPC press briefing on Tuesday, following the Committee’s 302nd meeting in Abuja.
Alongside the MPR cut, the MPC narrowed the asymmetric corridor around the benchmark rate to +250 and -250 basis points, from the previous +500/-100 basis points.
Cardoso explained that the adjustment reflects the Committee’s cautious attempt to ease monetary conditions in response to signs of moderating inflation and improving macroeconomic fundamentals.
These measures, the CBN said, were carefully balanced to sustain ongoing disinflation efforts while ensuring the banking sector has adequate liquidity to support credit expansion and economic growth.
