Dollar Crash: CBN's MPC Members Share Opinion on New Naira Exchange Rates
- The Monetary Policy Committee (MPC) of the CBN has shared their opinions on the current performance of the naira
- The value of the naira in official and unofficial forex markets has appreciated against the US dollar
- Despite improvements, calls remain for structural reforms to sustain Nigerian currency stability
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Members of the Central Bank of Nigeria's Monetary Policy Committee (MPC) said the naira’s recent stability reflects improved confidence and reforms in the foreign exchange market.
Their statement is part of the CBN communique from the MPC meeting held on Monday, July 21, and Tuesday, July 22.
After the meeting, the 12-member committee voted unanimously to keep the benchmark interest rate at 27.5%.
Source: Getty Images
They cited the drop in inflation, exchange rate stability, and hopes to consolidate these gains as their reasons for the decision, while warning that inflationary pressures still pose risks.
MPC members' reaction to naira's latest movement
Several members noted that the naira has appreciated in the official market, with the premium against parallel rates narrowing to as little as one naira, a rare convergence after decades of arbitrage.
They linked the trend to stronger FX turnover, rising oil earnings, non-oil export inflows and diaspora remittances.
Emem Usoro, one of the members, said the naira’s appreciation is backed by higher market turnover and growing investor confidence, has reinforced inflation expectations.
While Aku Pauline Odinkemelu attributed naira gains to tighter liquidity and reforms that reduced speculative activity in the FX market.
Mustapha Akinkunmi noted that the currency’s volatility had fallen sharply, with the spread between official and parallel markets almost eliminated.
He added that external reserves of over $40 billion now provide 9.5 months of import cover.
Bala Moh’d Bello argued that achieving low inflation will help restore long-term trust in the naira and deepen Nigeria’s capital markets, making it easier for companies to borrow in local currency rather than dollars.
Muhammad Sani Abdullahi noted that naira assets are gaining traction as sentiment improves, while other members urged fiscal discipline and structural reforms to ensure recent gains are not reversed.
Source: Getty Images
Naira exchange rates
The naira further appreciated against the dollar in the Nigerian Foreign Exchange Market (NFEM) on Tuesday, September 16 by N12.61 or 0.84% to settle at N1,484.62/$1 compared with the previous day’s N1,497.23/$1.
Similarly, the Nigerian currency improved its value against the Pound Sterling in the official market yesterday by N11.16 to trade at N2,026.89/£1 versus the preceding day’s N2,038.05/£1.
It also gained N6.92 against the Euro to close at N1,754.55/€1 compared with Monday’s value of N1,761.47/€1.
As for the black market, the Naira gained N5 against the greenback during the trading session to sell for N1,505/$1 versus the preceding day’s rate of N1,510/$1.
Nigeria's external reserves increase
Earlier, Legit.ng reported that Nigeria’s external reserves surged further to $41.7billion, from $41.66 billion.
CBN said that the economy has seen successive inflows from exporters and remittances from abroad.
Analysts have said that incremental build-up provides a critical support against external vulnerabilities such as volatile oil prices and currency fluctuations.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
