The naira showed modest gains in both the official and parallel foreign exchange markets on Tuesday, appreciating to N1,625/$1 in the parallel market and N1,588.50/$1 at the official rate. This marks the second consecutive day of improvement, following Monday’s rates of N1,627/$1 and N1,597/$1 respectively. The intra-day performance of the currency reflected notable volatility, fluctuating between N1,580 and N1,601.5 per dollar.
At the Central Bank of Nigeria’s 300th Monetary Policy Committee (MPC) meeting held in Abuja, Governor Olayemi Cardoso revealed that foreign exchange volatility has significantly decreased to below 0.5%, a major improvement from over 4% recorded a year ago. This decline is credited to ongoing monetary and fiscal reforms aimed at stabilizing the macroeconomic environment and reinforcing investor confidence.
Cardoso emphasized that the current exchange rate stability is the result of a consistent orthodox monetary policy framework, market liberalization, and enhanced transparency in central banking operations. He noted that recent reforms, including the unification of exchange rates and improved FX supply, are now delivering tangible outcomes.
A highlight of the CBN’s progress includes a substantial rise in Nigeria’s net external reserves, which surged from just over $3 billion to around $23 billion. This growth, described by Cardoso as a “quantum leap,” is driven by restored investor trust, renewed reporting practices, and a revival of previously inactive market players. Gross reserves, currently in the $33–34 billion range, are also expected to climb further with increased oil revenues and stronger non-oil exports.
In a move to maintain policy continuity, all 12 MPC members voted unanimously to retain existing monetary parameters: the Monetary Policy Rate at 27.5%, the Cash Reserve Ratio at 50% for commercial banks, and the Liquidity Ratio at 30%. These decisions reflect the committee’s confidence in the ongoing reform trajectory and its effectiveness in fostering macroeconomic stability.
Source: Nairametric