Naira Steadies at N1,328.67/$ After CBN Rate Cut as Reserves Hit 18-Year High

The naira held steady at N1,328.67 per dollar in the official foreign exchange market on Thursday after the Central Bank of Nigeria reset its benchmark interest rate, with strong external buffers supporting the local currency.

CBN data showed the naira depreciated marginally by 18 kobo, with the dollar quoted at N1,328.67 on Thursday compared with N1,328.49 on Wednesday at the Nigerian Foreign Exchange Market (NFEM). In the parallel market, also known as the black market, the local currency also steadied at N1,385 per dollar.

Official market turnover drops

Total turnover at the interbank segment of the FX market declined by 62.05 percent to $105.95 million on Thursday from $279.18 million on Wednesday. The number of deals also dropped from 183 on Wednesday to 103 on Thursday, representing a 43.72 percent decline.

Thursday’s NFEM figures for deals and turnover were not available as of the time of reporting. Activity had improved on Wednesday, with total turnover at the NFEM window rising 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 from 367 on Tuesday to 389 on Wednesday.

Parallel market gap narrows

The gap between the official and parallel market rates narrowed slightly to N57, or 4.29 percent, on Thursday from N58, or 4.37 percent, previously.

Reserves and MPC decision

Nigeria’s external reserves, which give the CBN the firepower to defend the naira and meet external obligations, have maintained a steady growth trajectory, rising to an 18-year high of $54.83 billion as of September 23, 2026. The reserves represented a 30.02 percent increase from the $42.17 billion recorded in the corresponding period of 2025, according to data published on the CBN website.

Analysts at CardinalStone said sustained FX inflows from both domestic and foreign sources, alongside the current-account surplus, had lifted gross reserves to $54.7 billion and net reserves above $40 billion, providing an important buffer for the naira.

The Monetary Policy Committee (MPC) voted to reset the Monetary Policy Rate (MPR) to 23.0 percent from 26.5 percent and recalibrate the asymmetric corridor to +50/-300 basis points from +50/-450 basis points after its two-day meeting on Monday and Tuesday in Abuja. The MPC left the Cash Reserve Ratio (CRR) and liquidity ratio requirements unchanged.

The analysts said the MPC’s decisions reflected the need to align the policy rate with improving domestic macroeconomic conditions while continuing to contain inflation risks.

"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.

For the naira, consumers and businesses, stronger reserves and a narrower official-parallel gap give the CBN more room to manage FX demand. But the sharp fall in interbank turnover on Thursday shows liquidity can still swing quickly.