The Naira appreciated against the US dollar at the official and parallel foreign exchange markets on Tuesday after the Central Bank of Nigeria splashed interest rates by 50 basis points to 27 per cent, the first time since 2020.
The Central Bank of Nigeria’s data showed that the Naira strengthened to N1,487.37 per dollar on Tuesday, up from N1,488.60 on Monday.
This means that the Naira gained N1.23 against the dollar on a day-to-day basis.
Similarly, at the black market, the Naira firmed up by N2 to N1,520 against the dollar on Tuesday, up from N1,522 on Monday.
Recall that the country’s currency slightly dropped on Monday to begin the week.
However, the first interest rate reduction made by the CBN Monetary Policy Committee to 27 per cent may have impacted the money market positively.
The apex bank governor, Olayemi Cardoso, said the decision to cut the interest rate was based on improved prevailing macroeconomic stability evidence, months of disinflation, output growth, a stable exchange rate and robust external reserves.
“The MPC expressed satisfaction with the prevailing macroeconomic stability evidenced by the improvements in several indicators.
“These include the sustained disinflation, improved output growth, stable exchange rate, and robust external reserves.”
The development follows the country’s continued surge in external reserves, which rose to $42.13 billion on September 22, 2025, up from $42.03 billion the previous day.
Naira appreciates against dollar across FX markets after CBN interest rate cut