By Atoyebi Nike
The Naira strengthened on Tuesday, appreciating to N1,441 per dollar as confidence improved following the conclusion of the Central Bank of Nigeria’s 303rd Monetary Policy Committee meeting. The updated figures on the CBN’s website show the currency rising from N1,452 per dollar recorded a day earlier, reflecting renewed optimism driven by the bank’s continued aggressive tightening to curb inflation and stabilize the foreign exchange market.
The MPC meeting, which lasted two days in Abuja, ended with members voting to retain all major policy indicators. The decision signalled the apex bank’s firm commitment to restoring macroeconomic stability. The Monetary Policy Rate was left at 27 percent, its highest level in years, and remains the benchmark for lending rates across the financial system. The rate’s elevated position forms a key part of efforts to contain rising prices and reduce volatility in the FX market.
Other policy tools were also maintained at their existing levels. The Cash Reserve Ratio stays at 45 percent for Deposit Money Banks and 16 percent for Merchant Banks. The Liquidity Ratio remains at 30 percent. The Asymmetric Corridor was adjusted to plus 50 and minus 450 basis points around the MPR to improve control over short-term interest rate movements.
CBN Governor Olayemi Cardoso said the decision to sustain a tight monetary stance was necessary to build on recent gains in the exchange market. He explained that the policy direction is intended to attract foreign inflows, improve transparency in the system, and support the government’s wider economic reform programme. According to him, although the tightening cycle poses challenges, it is designed to deliver long-term stability and boost confidence in Nigeria’s monetary pathway.
