The Nigerian naira ended November on a slightly weaker note, continuing a trend of volatility in the foreign exchange market. By November 28, the currency traded at N1,446.9 per dollar, up from N1,438/$1 at the start of the month. Analysts note that while this represents a moderate depreciation, it underscores the naira’s fragile stability in recent months.
November saw only a brief period of elevated exchange rates above the N1,450/$1 mark, lasting five consecutive days. During this spell, the naira touched N1,452 on November 24, N1,458 on November 21, and N1,459.95 on November 20. This short-lived surge contrasted sharply with October, when the naira remained above N1,450/$1 for 18 straight days, peaking at N1,474 on October 16.
October’s extended pressure reflected high import demand, speculative trading, and inconsistent foreign exchange supply to official channels. Daily fluctuations during the month saw the currency swing between N1,431 and N1,474, highlighting the market’s sensitivity to external and domestic factors. Despite these pressures, November’s movements suggested a slight easing of volatility.
The Central Bank of Nigeria (CBN) maintained all key monetary policy rates at its 303rd Monetary Policy Committee meeting in late November. The Monetary Policy Rate stayed at 27%, the Cash Reserve Ratio at 45% for deposit banks, and the Liquidity Ratio at 30%. The committee stressed that maintaining these parameters was crucial to sustaining disinflation, following a drop in headline inflation from 18.02% in September to 16.05% in October.
CBN Governor Olayemi Cardoso highlighted ongoing efforts to strengthen the foreign exchange market. At the annual Bankers’ Dinner in Lagos, he confirmed that a revised FX manual would soon be released. The update aims to improve transparency, expand participation, and enhance surveillance across the electronic FX system, signaling the central bank’s commitment to stabilizing the naira.
source: nairametrics