CBN Cuts Interest Rate, Boosts Naira Trading Activity

On September 22, the Central Bank of Nigeria (CBN), led by Governor Olayemi Cardoso, reduced the Monetary Policy Rate by 350 basis points from 26.5% to 23%. This decision aimed to align the policy rate with prevailing market rates and enhance monetary policy effectiveness.

Following this announcement, the naira began the trading week at ₦1,329.51 per dollar, showing a slight improvement from the previous opening benchmark of ₦1,331.20. Despite some fluctuations, the naira's performance did not lead to a significant depreciation.

Trading activity in the Nigerian Foreign Exchange Market increased, with turnover reaching approximately $2.25 billion from Monday to Thursday, up 8.9% from the previous week. The highest turnover was recorded on Wednesday at $732.45 million across 389 deals.

The naira's closing rates varied throughout the week, ending at ₦1,329.51 on Friday, reflecting a small overall improvement despite earlier declines.