Naira strengthens ahead MPC meeting

Ahead of the Monetary Policy Committee meeting of the Central Bank of Nigeria which started yesterday, the Naira has again appreciated against the U.S dollar moving from N1,519/$ to N1,497/$. The largest daily gain occurred on September 19, with a 0.66% drop in the USD/NGN exchange rate. However, as stakeholders await the MPC decision today, […]

Ahead of the Monetary Policy Committee meeting of the Central Bank of Nigeria which started yesterday, the Naira has again appreciated against the U.S dollar moving from N1,519/$ to N1,497/$.

The largest daily gain occurred on September 19, with a 0.66% drop in the USD/NGN exchange rate.

However, as stakeholders await the MPC decision today, the official exchange rate further appreciated marginally closing at 1,488.9247 at the opening of the week from 1,489 to a dollar it closed last week.

The Nigerian central bank’s Monetary Policy Committee (MPC) began a two-day meeting on Monday, September 22, and is scheduled to announce its decisions on September 23 (Tuesday).

Markets are anticipating that Nigeria’s central bank will lower interest rates on Wednesday, citing a stronger naira and lower inflation as potential reasons for relaxing monetary policy.

Headline inflation has declined for the fifth consecutive month to 20.1% year-over-year in August, influenced by naira stability and increased foreign exchange reserves.

 

 

 

The naira has also strengthened in the black market, trading between N1,515 and N1,517/$ bandwidth.

 

 

 

Daily Trust observes that many factors are supporting the naira’s rise, including improved supply and exchange rate reserves.

 

 

 

An increase in external reserves has resulted from higher oil export, production, and natural gas revenue, while oil theft in Nigeria is gradually easing.