On Monday, the Naira rose slightly as traders actively prepared for the 303rd MPC meeting in Abuja.
According to the Central Bank, the currency closed at ₦1,452/$1, improving from Friday’s ₦1,458/$1.
However, the parallel market told a different story, with the Naira weakening to ₦1,472/$1 from ₦1,462/$1.
Naira Moves Ahead Of MPC
This contrast highlights the uncertainty that continues to shape Nigeria’s foreign exchange markets ahead of the meeting.
Analysts expect the MPC to weigh rising reserves, easing inflation, and persistent currency pressures carefully.
MPC’s Last Decisions
At its last meeting, the Committee surprised markets by cutting the Monetary Policy Rate from 27.5% to 27%.
Additionally, it narrowed the MPR corridor to +250/-250 basis points to improve liquidity control.
Meanwhile, the Committee retained key parameters, including the CRR and Liquidity Ratios, signalling cautious stability.
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Consequently, this upcoming meeting could play a decisive role in shaping confidence in the Naira and financial markets.
Market Outlook
Standard Bank predicts the Naira will end December at ₦1,458.8/$1 thanks to improved liquidity and growing investor interest.
Since mid-September, the currency has traded below ₦1,500, reflecting the Central Bank’s sustained market interventions.
Earlier projections had the Naira closing 2025 at ₦1,585.5/$1, stronger than previous forecasts suggested.
Nevertheless, political developments and fiscal spending ahead of the 2027 elections may place renewed pressure on the Naira.
President Bola Tinubu outlined in the 2025 budget that inflation should fall to 15% while the exchange rate improves to ₦1,500.
As the MPC convenes, investors remain watchful, knowing the Committee’s decisions could influence Nigeria’s economic path for months.
