The naira strengthened against the US dollar to close at N1,329.50/$ on Wednesday, September 30, as activity in the interbank foreign exchange market surged by 123 per cent to $179.58 million.
Data from the Central Bank of Nigeria (CBN) showed that interbank turnover rose sharply from the $80.58 million recorded on September 29.
The naira’s latest close represented an improvement from N1,331/$ recorded at the previous trading session, extending the relatively stable trading pattern seen in the currency market towards the end of September.
The currency traded within a range of N1,328/$ to N1,331.75/$ during Wednesday’s session, with a weighted average rate of N1,329.16/$.
A total of 126 deals were recorded in the interbank market, compared with 94 deals on September 29.
Interbank turnover had stood at $111.06 million from 108 deals on September 25, while September 24 recorded $105.95 million from 103 deals.
The latest figures indicate a strong rebound in foreign exchange market activity after turnover declined on September 29.
Naira closes September relatively stable
The naira ended September at N1,329.50/$, compared with N1,329/$ at the beginning of the month.
The currency moved through different levels during the period, including N1,351.50/$ on August 19 and N1,374.50/$ on July 21.
On September 29, the naira closed at N1,331/$, with a weighted average rate of N1,330.47/$.
The September performance came amid an improvement in Nigeria’s external reserve position and a shift in the Central Bank’s monetary policy stance.
Nigeria’s foreign exchange reserves crossed the $55 billion mark in September, reaching their highest level in more than 18 years, according to CBN Governor Olayemi Cardoso.
The reserves had earlier risen above $54 billion on September 3, reaching $54.08 billion, before continuing their upward trajectory.
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The latest reserve position is also above the CBN’s projected level of about $51.04 billion for the full year 2026.
CBN data showed that the country’s reserves increased by $9.29 billion during the first nine months of 2026, more than seven times the increase recorded during the corresponding period of 2025.
CBN cuts interest rate to 23%
The improved foreign exchange conditions also coincided with the CBN’s recent decision to ease monetary policy.
The apex bank reduced the Monetary Policy Rate (MPR) by 350 basis points from 26.5 per cent to 23 per cent.
The rate cut represented a shift in the monetary policy stance following improvements in foreign exchange conditions and the country’s reserve position.
At the same Monetary Policy Committee meeting, the CBN recalibrated the asymmetric corridor around the MPR to +50/-300 basis points.
The committee retained the Cash Reserve Requirement (CRR) at 45 per cent for Deposit Money Banks and 16 per cent for Merchant Banks.
It also maintained the 75 per cent CRR applicable to non-Treasury Single Account (TSA) public sector deposits.
With the naira ending September at N1,329.50/$ and foreign exchange reserves above $55 billion, developments in the currency market will remain closely watched as the CBN balances exchange-rate stability with its broader monetary policy objectives.