The naira opened the new week on a stronger note, posting mild gains in the official foreign exchange market ahead of the Central Bank of Nigeria’s three hundred and third Monetary Policy Committee meeting scheduled to hold in Abuja from November 24th to 25th, 2025.
Latest figures published on the CBN website show that the naira appreciated to one thousand four hundred and fifty two per dollar on Monday, compared to Friday’s closing rate of one thousand four hundred and fifty eight per dollar. The movement signals renewed investor positioning as attention turns to the monetary authority’s next policy direction.
However, activity across the parallel market reflected a different trend. The currency slipped slightly, closing around one thousand four hundred and seventy two per dollar after trading at one thousand four hundred and sixty two per dollar last Friday, highlighting the persistent gap between official and informal market pricing.
The News Chronicle learned that traders are adjusting their exposure ahead of what many analysts believe could be one of the most consequential MPC meetings of the year, with the Committee expected to weigh rising external reserves, moderating inflation data, and the enduring pressure on the naira.
At its previous sitting, the MPC surprised the market by cutting the Monetary Policy Rate from 27.5% to 27%, marking its first policy easing in several months. The Committee also narrowed the asymmetric corridor around the benchmark rate to improve liquidity management while maintaining the cash reserve ratio for commercial banks at forty-five percent, the liquidity ratio at thirty percent, and other parameters unchanged.
Market watchers expect a more cautious stance this time as policymakers evaluate the recent uptick in foreign reserves and the delicate balance between supporting economic recovery and stabilizing the currency.
Forecasts from Standard Bank suggest the naira may settle around one thousand four hundred and fifty-eight per dollar by December 2025, supported by stronger foreign exchange inflows and increasing investor appetite for naira-denominated assets. The bank also warned that political spending ahead of the 2027 elections could pose fresh risks.
President Bola Tinubu had earlier projected that inflation would slow significantly in 2025, with the exchange rate expected to stabilise closer to one thousand five hundred naira to the dollar as part of the assumptions underpinning the national budget.
