Nigeria’s currency closed November on a softer note, extending the volatility that has characterised the foreign exchange market in recent months.
At the official window, the naira settled at 1,446.9 to the United States dollar on November 28, slightly weaker than the 1,438 recorded at the beginning of the month.
It also marked a drop from the 1,427.5 level seen on October 31, suggesting that the Central Bank of Nigeria’s tightening cycle is yet to deliver lasting stability.
The News Chronicle gathered that the naira crossed the 1,450 threshold on only a handful of days in November, a stark contrast to the sustained pressure witnessed in October.
Between November 18 and November 24, the currency traded between 1,451 and 1,459.95 to the dollar, but quickly retreated afterward. Analysts view this shorter period of stress as an improvement compared to the eighteen consecutive days of elevated rates recorded in October.
October had been marked by sharper fluctuations, with the naira repeatedly trading between 1,460 and 1,474.
The currency even touched its October peak of 1,474 on October 16 amid persistent demand pressures, speculative trading, and inconsistent dollar inflows into the official market.
In November, monetary policy developments took centre stage as the Central Bank’s Monetary Policy Committee held its 303rd meeting in Abuja.
Policymakers left all key indicators unchanged, maintaining the benchmark interest rate at 27 percent, while the cash reserve ratio for deposit money banks was held at 45 percent.
The committee said the decision was necessary to support emerging signs of disinflation after headline inflation eased to 16.05 percent in October.
The CBN also announced that work has reached an advanced stage on a revised foreign exchange manual, expected to enhance documentation standards, deepen participation, and improve transparency across the market.
Governor Olayemi Cardoso noted that the updated guidelines would support efforts to rebuild confidence in the naira and strengthen the electronic FX management system.
