Naira Gains Further as CBN Holds Interest Rate at 26.50%
By Aboki Forex —
The Nigerian Naira extended its appreciation against the United States Dollar at the official foreign exchange market on Tuesday, as the Central Bank of Nigeria (CBN) retained the Monetary Policy Rate (MPR) at 26.50 per cent.
CBN data showed that the Naira strengthened to N1,375.31 per dollar on Tuesday from N1,380.11 traded on Monday. This represents a day-to-day gain of N4.80 against the dollar at the official market.
Black Market Rate Holds Steady
At the black market, the Naira remained unchanged at N1,425 per dollar on Tuesday, the same exchange rate at which it traded the previous day. The parallel market rate showed no movement despite the gain recorded at the official window.
CBN Retains Interest Rate at 26.50%
The development comes as the CBN's 306th Monetary Policy Committee (MPC) decided to retain the interest rate at 26.50 per cent. The hold decision signals the central bank's continued focus on taming inflation while allowing recent gains in the currency to stabilise.
DAILY POST reports that the country's foreign reserves rose to $52.02 billion as of July 20, 2026. The increase in reserves provides the CBN with more firepower to defend the Naira and manage forex demand.
What This Means for the Naira and Businesses
The sustained appreciation at the official market, combined with stable reserves and a hold on interest rates, suggests the CBN is maintaining its tight monetary stance. For Nigerian businesses that rely on official forex access, the stronger Naira could help reduce import costs. However, the wide gap between the official and black market rates remains a concern for transparency and market confidence.