The naira weakened slightly to N1,359 against the dollar on Tuesday after the Central Bank of Nigeria concluded its 304th Monetary Policy Committee meeting and trimmed the benchmark interest rate.
Data from the official foreign exchange market showed the currency slipped from N1,353.5 recorded a day earlier, as investors responded to the decision to lower the Monetary Policy Rate by 50 basis points to 26.5 per cent.
The adjustment comes after months of tight monetary policy. While inflation has eased for the eleventh straight month to 15.1 per cent in January 2026, the market reaction suggests traders are weighing the impact of the shift toward cautious easing.
Other key policy metrics were left unchanged. The Cash Reserve Ratio remains at 45 per cent for commercial banks and 16 per cent for merchant banks, while the Liquidity Ratio stays at 30 per cent.
The News Chronicle gathered that the modest pressure on the naira reflects short-term positioning by investors rather than a broad loss of confidence, especially as external buffers continue to strengthen.
CBN Governor Olayemi Cardoso disclosed that Nigeria’s gross external reserves climbed to 50.45 billion dollars as of mid February, the highest level in 13 years. He noted that sustained confidence in the foreign exchange framework remains critical to stability.
Market analysts say the mixed post-MPC currency movements seen in recent months highlight how sentiment, liquidity conditions, and supply dynamics often shape the naira’s direction beyond headline rate decisions.
