Naira strengthens as CBN holds MPR at 27 percent
The Nigerian naira strengthened to N1,441 per dollar at the official market following the decision of the Central Bank of Nigeria to retain the Monetary Policy Rate at 27 percent. The movement reflects a brief improvement in market confidence as investors reacted to the bank’s stance on inflation control and currency stability.
Traders noted that the naira gained ground after the policy announcement as demand pressure eased slightly in the official window. The stability of the interest rate signaled continuity in the Central Bank’s tight monetary policy aimed at curbing inflation and reducing excess liquidity in the financial system.
Financial analysts said the rate hold was largely expected, as inflation remains high and the apex bank is cautious about loosening policy too early. They added that higher interest rates continue to attract foreign portfolio inflows, which supports dollar supply and helps strengthen the local currency in the short term.
Despite the recent appreciation, economists warned that sustained naira stability depends on stronger foreign exchange inflows, improved export earnings, and consistent oil revenue. They also stressed the need for continued reforms to boost investor confidence and deepen the foreign exchange market.
