Naira Edges Higher to N1,380/$1 Ahead of CBN MPC Interest Rate Decision
By Aboki Forex —
The naira appreciated slightly at the official foreign exchange market on Monday, gaining marginally ahead of the Central Bank of Nigeria's Monetary Policy Committee interest rate decision. CBN data showed the naira strengthened to N1,380.10 per dollar from N1,380.18 per dollar recorded last Friday, a gain of just N0.08.
Mixed Performance Across Markets
At the black market, the naira held steady, remaining unchanged at N1,425 per dollar on Monday. This was the same rate recorded at the close of trading last Friday. The parallel market showed no movement even as the official window recorded a marginal appreciation.
External Reserves Climb Higher
Despite the mixed sentiment across the official and parallel foreign exchange markets, the country's external reserves have continued their appreciation streak. Reserves rose to $51.92 billion as of July 16, 2026, providing a buffer for the economy as it navigates currency pressures.
MPC Meeting in Focus
Monday's exchange rate comes as the Nigerian economy braces for the outcome of the apex bank's 306th MPC meeting on Tuesday. Currently, Nigeria's benchmark interest rate stands at 26.50 percent. The inflation rate was 15.91 percent in June, according to the National Bureau of Statistics. The MPC is widely expected to weigh the need to tighten or hold rates to balance price stability with growth.
For consumers and businesses, the direction of the CBN's rate decision will signal the near-term cost of borrowing and could influence naira stability. A hold might ease pressure on businesses, while a hike could further strengthen the currency but slow economic activity.