November 25, (THEWILL) — The naira strengthened further on Monday, appreciating to ₦1,452 per dollar at the official foreign exchange market as investors, analysts, and market operators turned their attention to the 303rd Monetary Policy Committee (MPC) meeting.
The improvement marks one of the currency’s most stable performances in recent weeks, reinforcing optimism that ongoing monetary reforms are beginning to yield results.
Market analysts attribute the naira’s appreciation to improved liquidity, sustained monetary tightening, and growing investor confidence ahead of the MPC’s policy announcements.
In recent weeks, the Central Bank of Nigeria (CBN) has intensified efforts to improve FX market transparency, clear outstanding obligations, and encourage greater participation from both local and foreign investors measures that have collectively supported a stronger naira position.
According to traders in the Nigerian Autonomous Foreign Exchange Market (NAFEM), Monday’s trading session saw increased dollar supply from both institutional investors and corporates looking to take advantage of the naira’s recent stability.
Demand pressures also eased, contributing to a more balanced market environment that favoured the local currency.
Focus Shifts to MPC Policy Direction
Expectations are running high as stakeholders await the MPC’s deliberations, with the committee expected to address inflationary pressures, interest rate adjustments, and strategies to deepen FX liquidity.
Many analysts believe the CBN may sustain its current tightening posture to keep inflation in check, particularly as consumer prices continue to rise across key sectors.
While the naira’s appreciation is a positive development, analysts warn that sustainability hinges on policy consistency, improved dollar inflows from non-oil sectors, and a reduction in speculative activity within the parallel market.
Continued reforms, they argue, will be necessary to maintain stability and support long-term confidence in the currency.
For now, the market remains upbeat, with many hoping that the 303rd MPC meeting will reinforce the gains recorded so far and provide a clearer roadmap for Nigeria’s monetary policy direction for the rest of the year.
Ogochukwu Onwaeze
