The naira faced a steady decline throughout the week, closing at N1,368/$ in the official market, following the Central Bank of Nigeria’s (CBN) 304th Monetary Policy Committee (MPC) meeting. The week began with the currency trading at N1,353.5/$ on Monday, and depreciation continued in each subsequent trading session, reflecting mounting pressure on the local currency.
Market analysts attribute this trend to liquidity conditions and investor sentiment surrounding the MPC decisions. On Tuesday, immediately after the meeting, the naira slipped to N1,359/$, edging lower to N1,359.5/$ on Wednesday, N1,361.5/$ on Thursday, and finally settling at its week-low of N1,368.5/$ on Friday. This pattern highlights a sustained weakening of the naira in the official market.
The currency’s performance contrasts with previous MPC reactions. For example, after the 303rd MPC meeting, the naira appreciated to N1,441/$, while earlier sessions showed mixed outcomes depending on prevailing market conditions. Historical patterns suggest that the exchange rate is highly sensitive to both policy decisions and market liquidity at the time.
The recent depreciation is also part of a broader trend. Data from the previous week shows the naira gradually weakening from N1,344/$ on Monday to N1,348/$ on Friday, indicating that the ongoing pressure is not solely a reaction to the 304th MPC meeting but a continuation of previous market dynamics.
During the 304th MPC meeting, the committee announced a 50 basis points cut to the Monetary Policy Rate, bringing it to 26.5%, while maintaining key ratios including the Cash Reserve Ratio at 45% for commercial banks. Despite exchange rate pressures, Nigeria’s external reserves improved, rising to $50.45 billion as of February 16, 2026—the highest level in 13 years—providing a strong buffer amid currency volatility.
source: nairametrics