Deutsche Bank added Nigeria to its frontier currency monitor on 19 October and called the naira undervalued, citing attractive carry and positive real interest rates. The naira traded near 1,332 per US dollar, with the policy rate at 23% against inflation of 14.63%. The bank's main concern is fiscal policy, as the government plans 5.75 trillion naira (about US$4.3 billion) of bond offers in late 2026. The central bank cut its rate by 3.5 points on 22 September, and FTSE Russell moved Nigeria back to frontier market status on 21 September. The open question is whether the naira keeps its gains as borrowing and pre-election spending rise before the presidential vote on 16 January 2027.
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