Naira Weakens Despite Rising Reserves as CBN Eases Monetary Policy

Despite rising reserves, the Nigerian Naira continued to weaken, closing at a lower rate per dollar in the official market. The Central Bank of Nigeria (CBN) eased its monetary policy following the conclusion of its 302nd Monetary Policy Committee meeting, leading to a 1% depreciation in the Naira on Tuesday.

The parallel market also saw a decline, trading at a wider gap compared to the official rate. However, Nigeria's external reserves reached a high of $42 billion, the highest level since September 2019, indicating a steady increase throughout September.

The CBN cut the Monetary Policy Rate (MPR) by 50 basis points to 27%, aiming to ease monetary conditions amidst signs of moderating inflation and a stronger macroeconomic outlook.