Naira Stabilizes at N1,497/€ as French Debt Yields Rise

The Naira held steady at N1,497/€ during the mid-week trading session, benefiting from a decline in the euro as French debt yields exceeded 5% for the first time since 2002. This situation arose after French 10-year government bonds fell, increasing yields by seven basis points.

The Central Bank of Nigeria (CBN) noted that this marked the first time the Naira crossed the N1,500/€ resistance level since April 2024. The CBN has shifted to a slightly dovish stance after nearly three years of aggressive monetary tightening aimed at controlling inflation, which had surged over 30%.

The benchmark interest rate was reduced to 23% to stimulate economic activities, while the cash reserve ratio for commercial banks remained high at 45%. The CBN is closely monitoring liquidity levels to prevent a speculative attack on the Naira, which has a broad money supply exceeding N146 trillion.

The euro also faced challenges against the dollar, falling 0.2% to $1.1214.