Naira firms as forex turnover rises 9% after CBN rate cut

The naira firmed slightly against the dollar last week after Nigeria's central bank cut its benchmark interest rate, with total forex turnover rising 8.9% to about $2.25 billion over four days. The Central Bank of Nigeria reduced the Monetary Policy Rate by 350 basis points to 23% from 26.5% on Tuesday, September 22, aiming to align policy with market rates. Trading peaked Wednesday at $732.45 million from 389 deals, up from $694.58 million on Tuesday. The currency closed Friday at N1,329.51 per dollar, a 0.12% gain from the week's opening of N1,331.20, despite expectations that lower rates could reduce returns on naira assets and pressure the currency.