The Nigerian Naira recorded modest gains across the foreign exchange market on Monday, trading at N1,452/$1, up from N1,458/$1 last Friday, as investors positioned themselves ahead of the highly anticipated 303rd Monetary Policy Committee (MPC) meeting of the Central Bank of Nigeria (CBN). The two-day meeting, held in Abuja from November 24 to 25, 2025, is expected to provide critical guidance on the country’s monetary policy stance amid ongoing economic challenges.
While the official market showed gains, the parallel market reflected a slightly weaker trend. The Naira traded at N1,472/$1, compared to N1,462/$1 recorded last Friday, highlighting the continued pressures on the currency outside formal exchange channels. Analysts suggest that these movements underscore the cautious optimism among traders while also pointing to persistent vulnerabilities in Nigeria’s currency market.
The upcoming MPC meeting follows a previous session in which the committee surprised markets with a modest 50 basis point cut in the Monetary Policy Rate (MPR) from 27.5% to 27%. The CBN also narrowed the asymmetric corridor around the MPR to +250/-250 basis points, a move aimed at improving liquidity management while signaling cautious confidence in macroeconomic stability. Other parameters, including the Cash Reserve Ratio (CRR) for commercial and merchant banks, and the liquidity ratio, were retained.
Analysts from Standard Bank project that the Naira could close the year at N1,458.8/$1, buoyed by rising foreign exchange reserves, growing banking system liquidity, and increased investor confidence. The currency has remained below N1,500/$1 since mid-September, reflecting ongoing efforts by the CBN to stabilize the market amid rising demand for foreign currency. Political developments and fiscal spending ahead of the 2027 general elections, however, remain potential sources of pressure.
President Bola Tinubu, in his 2025 budget presentation, emphasized a government target to reduce inflation from 34.6% to 15% while improving the exchange rate to N1,500/$1. Market watchers will closely monitor the outcomes of the MPC meeting to see whether the committee will adopt measures to further strengthen the Naira or maintain a cautious approach amid Nigeria’s complex macroeconomic landscape.
source: nairametrics