The Naira recovered steadily this week, trading under ₦1,450/$1 for four consecutive days.
It opened Monday at ₦1,452/$1 and strengthened gradually, reaching ₦1,446.9/$1 by Friday’s close.
Consequently, market confidence began to improve after last week’s sustained pressures.
Naira Shows Steady Recovery
Last week, the currency struggled, staying above ₦1,450/$1 and peaking at ₦1,459.95/$1 on Thursday.
Thus, the contrasting weeks highlighted ongoing volatility and the challenges facing Nigeria’s foreign exchange market.
Central Bank Maintains Policies
Analysts pointed to the Central Bank’s cautious policies as a key factor supporting the modest recovery.
During its 303rd meeting, the Monetary Policy Committee maintained the Monetary Policy Rate at 27%, ensuring stability.
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Moreover, the bank kept other measures, including the Cash Reserve Ratio and Liquidity Ratio, unchanged.
It also preserved the Asymmetric Corridor around the MPR at +50/-450 basis points to control short-term rates.
Governor Olayemi Cardoso emphasised that maintaining a restrictive stance consolidates gains and attracts foreign inflows.
Inflation And Market Outlook
Meanwhile, headline inflation eased to 16.05% in October, while food and core inflation also declined.
The MPC linked these improvements to stable exchange rates, better food supply, and a surplus in the current account.
Overall, this week’s Naira performance signalled cautious optimism, suggesting the currency could continue a gradual recovery.
Finally, market participants will closely watch upcoming policy decisions for clues about the Naira’s future direction.
