CBN slashes MPR to 23% as naira steadies near N1,328/$, reserves hit $55.25B

The CBN's Monetary Policy Committee cut the benchmark interest rate by 350 basis points to 23% from 26.5%, aiming to ease inflation which fell to 15.39% as of August. The official naira exchange rate stabilized between N1,327 and N1,330 per dollar, while the parallel market traded at N1,385/$ with a narrowed spread compared to previous years. External reserves reached a record $55.25 billion, supported by diaspora remittances, trade balances, and oil revenues.

In September OMO auctions, investors poured N20.58 trillion against a N3.9 trillion offer, signaling strong domestic liquidity and demand for naira-denominated assets despite Treasury Bill and OMO yields dipping post-rate cut. The CBN attributes stability to its tight monetary stance, OMO bills, and FX liquidity measures keeping the naira around N1,300/$ and avoiding earlier extremes near N1,500/$.

While the rate cut risks reducing foreign portfolio investment appeal as real yields fall, stability hinges on maintaining crude oil production at or above 2 million barrels per day. Will you consider the naira's current stability sufficient for long-term investments, or remain cautious about external pressures from oil volatility and potential hot money withdrawal?

SOURCE: https://nairametrics.com/2026/09/28/cbn-policy-buffers-keep-naira-dollar-mid-term-outlook-stable/