Naira Holds Steady as CBN Maintains Rates and Dollar Weakens

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CBN holds interest rates for the 7th time, stabilizing the naira despite a weakened US dollar globally.

The Nigerian naira remained stable at ₦1,535 per dollar on the unofficial market, following the CBN’s decision to keep the Monetary Policy Rate (MPR) unchanged for the seventh consecutive time.

This came despite the U.S. dollar index dropping near a two-week low. The naira didn’t benefit much, but its steadiness signals informal market confidence.

After its 301st Monetary Policy Committee (MPC) meeting, the CBN kept all key rates unchanged:
✓ MPR at 27.5%
✓ Cash Reserve Ratio: 50% (deposit banks), 16% (merchant banks)
✓ Liquidity Ratio: 30%
✓ Asymmetric corridor: +500/-100 bps

CBN Governor Olayemi Cardoso said reforms and tighter policies are improving naira perception. He noted rising local currency use and shrinking gaps between official and parallel exchange rates.

“There’s a lot of transformational stuff going on,” he said. “These changes are here to stay.”

Globally, the dollar dipped due to revived investor confidence and eased trade tensions after the U.S. reduced planned tariffs on Japan to 15%. Japan is also injecting $550 billion into its economy.
Since April, the dollar index has fallen over 6%, reducing its role as a safe haven asset.