Traders in Nigeria’s parallel market quoted the dollar at N1,385 on Wednesday, 23 September 2026, N5 stronger than the previous N1,390, even after the Central Bank of Nigeria cut the Monetary Policy Rate by 350 basis points to 23 per cent.
The move narrowed the gap between the unofficial rate and the official window to N58, or 4.37 per cent, from N61, or 4.59 per cent, on Monday.
Also read: CBN cuts benchmark interest rate to 23%
In the Nigerian Foreign Exchange Market the naira gained N2.02 on Tuesday to close at N1,327.78, a 0.15 per cent rise from N1,329.80 on Monday, according to CBN figures.
Turnover at that official window rose 107.02 per cent to $694.58 million on Tuesday from $335.51 million on Monday.
BusinessDay reported external reserves at $54.79 billion as of 21 September 2026, up 30.36 per cent from $42.03 billion on the same date in 2025.
CBN Governor Olayemi Cardoso said gross reserves stood at $55.25 billion as of 18 September 2026, the highest in 18 years and equal to about 11.3 months of import cover.
The Monetary Policy Committee took the rate decision after a two-day meeting in Abuja.
Muda Yusuf, chief executive of the Centre for the Promotion of Private Enterprise, said Nigeria’s easing while major foreign central banks stay tight could widen interest-rate gaps and make naira assets less attractive.
He warned of possible portfolio outflows and fresh pressure on the exchange rate.
The CPPE also said Nigeria was entering this easing cycle with stronger external buffers than in earlier rounds.
Analysts at AIICO Capital took a calmer line. “Expect the naira to hold near N1,330 at the official window. The rate cut narrows the return on naira assets, but reserves of about $55 billion, up a fifth since January, give the central bank room to smooth any outflows.”
The day’s gain is modest against a large cut in the policy rate. Liquidity and the reserve stock are the supports named by officials and by AIICO Capital.
Also read: CBN cuts benchmark interest rate to 23%
Muda Yusuf’s caution is that those supports can fade if foreign money leaves in search of higher yields elsewhere.
David Okere is a journalist and contributor to Freelanews.com, covering business, governance, public affairs, and human-interest stories with a commitment to accuracy, balance, and public interest reporting.
