The naira ended the week broadly stable across foreign exchange (FX) market segments amid the Central Bank of Nigeria’s (CBN) reset of its benchmark interest rate, as stronger external buffers continue to support the local currency.
Data published by the CBN showed that the naira appreciated marginally by N1.69 week-on-week as the dollar was quoted at N1,329.51 on Friday, compared with N1,331.20 quoted on Friday last week at the Nigerian Foreign Exchange Market (NFEM).
On a day-on-day basis, the local currency weakened slightly by 84 kobo from N1,328.67 quoted on Thursday. Over the five trading days, however, the naira strengthened marginally by 29 kobo from N1,329.80 on Monday.
Read also: Naira steadies at N1,328 per dollar after rate cut
In the parallel market, also known as the black market, the local currency steadied at N1,385 per dollar. The gap between the official and parallel market rates narrowed slightly to N56, or 4.21 percent, on Friday from N57, or 4.29 percent, on the previous day.
Activity moderated in the week under review, with total turnover at the interbank segment of the FX market standing at $711.79 million on Friday. This compared with cumulative turnover of $2.74 billion recorded over the five trading days of the previous week.
Although the NFEM figures for the full week were not available as of the time of reporting, total turnover for the four trading days this week stood at $2.25 billion, while the updated figure for the five trading days last week was $2.74 billion. The number of deals stood at 1,351 in the four trading days this week, compared with 1,498 deals recorded over five trading days last week.
Nigeria’s external reserves, which give the CBN the firepower to support the naira and meet external obligations, have maintained a steady growth trajectory, rising to an 18-year high of $54.86 billion as of September 24, 2026.
Read also: Naira records gains in black market despite rate cut
This represented a 30 percent increase from the $42.29 billion recorded in the corresponding period of 2025, according to data published on the CBN website.
Olayemi Cardoso, governor of the CBN, said gross external reserves stood at $55.25 billion on September 18, 2026, the highest level in the last 18 years and sufficient to finance approximately 11.3 months of imports of goods and services.
Announcing the outcome of the two-day Monetary Policy Committee (MPC) meeting in Abuja on Tuesday, Cardoso said the committee decided to reset the Monetary Policy Rate (MPR) at 23 percent.
The committee also recalibrated the Standing Facilities Corridor to +50/-300 basis points around the MPR and retained the Cash Reserve Requirement (CRR) for Deposit Money Banks at 45 percent, Merchant Banks at 16 percent and non-TSA public sector deposits at 75 percent.
Analysts said that despite the potential benefits of the rate cut to equities and the wider economy, the sharp reduction also creates risks for portfolio flows and the foreign-exchange market.
Muda Yusuf, chief executive officer of the Centre for the Promotion of Private Enterprise (CPPE), said the divergence between Nigeria’s monetary policy direction and tightening by some major central banks could affect interest-rate differentials and the relative attractiveness of naira-denominated financial assets.
He said this could increase the risk of portfolio-flow reversals and renewed pressure on the foreign-exchange market.
However, the CPPE said Nigeria was entering the policy transition with stronger external buffers than in previous episodes of monetary easing, citing improved foreign reserves and greater stability in the foreign-exchange market.