The Naira has recorded modest gains across the foreign exchange market, appreciating to N1,452/$1 on Monday, ahead of the highly anticipated 303rd Monetary Policy Committee (MPC) meeting of the Central Bank of Nigeria (CBN).
This represents an improvement from N1,458/$1 recorded last Friday.
However, the parallel market tells a different story, with the currency weakening mildly to N1,472/$1, compared to N1,462/$1 on Friday.
The upcoming MPC meeting is expected to be significant, as the Committee weighs Nigeria’s complex macroeconomic realities, rising external reserves, slowing inflation momentum, and persistent Naira pressures.
At its previous meeting, the MPC implemented a 50 basis point cut in the Monetary Policy Rate (MPR) from 27.5% to 27%, its first easing move in months.
Analysts at Standard Bank project the Naira will close at N1,458.8/$1 by December 2025, driven by improved foreign exchange reserves, buoyant banking system liquidity, and growing investor confidence in Naira assets.
The CBN’s sustained efforts to stabilize the market have contributed to the currency’s appreciation against the US dollar, which has been below N1,500 since September 15.
