E-Financial
How US Federal Reserve Interest Rate Decision Will Impact Naira
FXTM Research Analyst Lukman Otunuga writes on what could be the fate of Naira following Federal Reverse (United States of America) decision on interest rate.
The Naira has steadily appreciated against the Dollar this year, with prices currently trading around 365N on the parallel exchange.
While frequent intervention by the Central Bank of Nigeria has played a leading role in the Naira’s stability, rising confidence over Nigeria’s economic recovery has also become a crucial chess piece in the currency’s resurgence.
Although the Naira may continue to stabilise in the short term amid further intervention by the CBN, there still remains a threat of external forces causing downside pressures.
Outside of Nigeria, the major risk event for the Naira will be the outcome of the Federal Reserve meeting, which could create Dollar volatility.
While markets widely expect the Federal Reserve to leave interest rates unchanged in July, investors will be closely scrutinising the policy statement for additional clues on when the central bank plans to normalize its $4.5 trillion balance sheet.
If the policy statement also maintains a hawkish bias towards raising US interest rates once more before year end and the Dollar could receive a boost, consequently pressuring emerging markets, with Nigeria fitting into the category.
While the threat of capital outflows from a resurgent US Dollar may expose the Nigerian economy to downside risks, it should also be kept in mind that a chunk of government revenues are recouped from oil, which is priced in Dollars.
In the longer term, an appreciating Dollar will not only erode away the value of the government’s working revenues, but also enforce downside pressures on the nation’s parallel exchange.
Kuda Microfinance Bank partnered with Lovers & Frnds for a Valentine’s edition event on Sunday, February 15, at Space Hub Lekki, Lagos, redefining celebrations around love, friendship, and social connections beyond romance.
Kuda Bank
The R&B-themed gathering drew couples, friend groups, and solo attendees with music sets from DJs like TGarbs, games, gift exchanges, and colour-coded tags—red for relationships, yellow for mingling singles, orange for non-minglers—to spark easy interactions.
Kuda activated a branded photo booth, merchandise giveaways, prize activities, and complimentary drinks for Premium loyalty tier customers, while vendors used Kuda Business POS terminals for seamless cashless payments.
Senior Brand Manager Emmanuel Femi-Adejobi said: “We partner with experiences matching our customers’ lifestyles in music and entertainment, creating spaces they genuinely connect with—we’ll keep supporting how they live and celebrate.”
By Mathew Anthony, Market Analyst at FXTM
In another positive development for Nigeria, the CBN has proceeded with 50-basis points rate cut.
FXTM Logo
With favourable fundamental forces at play, it was always a question of how much rather than if rates will be cut in February.
Although some were expecting a hefty 100-basis point cut, this was still a positive move by the CBN, mirroring the dovish strategy of other major banks on the continent.
Interest rates were slashed thanks to cooling inflationary pressures, a stronger Naira and rising FX reserves.
This move is likely to boost confidence over the economic outlook ahead of the Q4 GDP report scheduled for release later this month.
Central Bank of Nigeria (CBN) has lowered its Monetary Policy Rate (MPR) by 50 basis points to 26.50 percent from 27 percent, a unanimous decision announced by Governor Olayemi Cardoso at the end of the 304th Monetary Policy Committee (MPC) meeting in Abuja on Tuesday.
CBN
Cardoso cited 11 straight months of decelerating headline inflation—reaching 15.10 percent in January 2026 per National Bureau of Statistics—as key, driven by prior tightening lags, naira stability, food supply gains, steady petroleum prices, export earnings, remittances, and balance of payments strength.
Liquidity ratio stays at 30 percent, CRR unchanged at 45 percent for commercial banks (16 percent merchant banks) and 75 percent non-TSA public deposits; standing facilities corridor now +50/-450 basis points around MPR.
The MPC retained other parameters, welcoming Executive Order 09 redirecting oil/gas revenues to the federation account for fiscal boost, last cutting rates in September 2025 after November’s hold.
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