Lagos, Nigeria – The naira depreciated steadily in the official market throughout the week, coinciding with the 304th Monetary Policy Committee meeting of the Central Bank of Nigeria, closing at N1,368.5 per dollar on Friday from Monday’s opening rate of N1,353.5.
Okay News reports that the currency slipped to N1,359 per dollar on Tuesday immediately after the conclusion of the MPC meeting, where the committee announced a 50 basis point rate cut to 26.5 percent from 27 percent. It weakened further to N1,359.5 on Wednesday and N1,361.5 on Thursday before settling at the week’s weakest level on Friday. This represents a consistent downward movement across all five trading sessions.
The naira’s reaction to the 304th MPC meeting contrasts with movements recorded after earlier policy decisions. After the 303rd MPC meeting, the currency appreciated to N1,441 per dollar, while following the 302nd meeting, it weakened to N1,493.2. These historical movements highlight the inconsistent post-MPC exchange rate outcomes, largely shaped by liquidity dynamics and market sentiment at the time.
A comparison with the previous week shows that exchange rate pressures have persisted beyond a single trading cycle. The naira had also recorded a largely depreciating trend in the week preceding the MPC meeting, moving from N1,344 per dollar to close at N1,348. The pattern suggests that the recent depreciation is part of a broader trend rather than a one-off reaction to the latest policy decision.
Despite the continued pressure on the exchange rate, Nigeria’s external buffer position has strengthened. Governor Olayemi Cardoso disclosed that the country’s gross external reserves rose to $50.45 billion as of February 16, 2026, the highest level recorded in 13 years. The MPC retained the Cash Reserve Ratio at 45 percent for commercial banks and 16 percent for merchant banks, maintaining a cautious stance while easing the benchmark rate. This currency depreciation reflects market sensitivity to policy shifts even as reserves remain strong. Sustained currency depreciation could influence future monetary policy decisions.
