Naira closes flat at official market after CBN raises rate

The naira on Wednesday closed flat against the dollar at the official foreign exchange (FX) market, a day after the Central Bank of Nigeria (CBN) increased Its benchmark interest rate by 150 basis points to 26.25 percent.

After trading on Wednesday, the naira gained marginally by 0.21 percent as the dollar was quoted at N1,462.59, stronger than N1,465.68 quoted on Tuesday at the Nigerian Autonomous Foreign Exchange Market (NAFEM), according to the data from the FMDQ Securities Exchange Limited.

What this means is that if naira stabilises Imported goods may become cheaper since the purchasing power of the naira increases. This can lead to lower prices for products that Nigeria imports.

It also means that investors find the Nigerian currency more attractive due to the higher returns on investments. This can lead to increased foreign investment, lower inflationary pressures, and potentially stronger economic growth, benefiting consumers and businesses alike, said a financial market analyst.

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The FX market summary released by the FMDQ showed that the intraday high closed at N1,531 per dollar on Wednesday, stronger than N1,549/$1 closed on Tuesday. The intraday low closed steady at N1,401/$1 on the spot trading.

Dollar supplied by willing buyers and willing sellers declined by 53.96 percent to $123.45 million on Wednesday from $268.17 million recorded on Tuesday.

The naira on Wednesday weakened against the dollar, losing 1.47 percent at the parallel market also, known as the black market.

The local currency was quoted at N1,500 per dollar on Wednesday, weaker than N1,478/$1 closed on Tuesday at the parallel market.

After it’s two days Monetary Policy Committee (MPC) meeting on Tuesday, the CBN retained the asymmetric corridor at +100/-300 around the monetary policy rate (MPR), retained the cash Reserve Ratio (CRR) of commercial banks at 45.00 percent and kept the liquidity ratio constant at 30.00 percent.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.