The Nigerian naira strengthened to N1,355 per US dollar on Monday, extending a week-long recovery to its highest level since February 2026, according to Central Bank of Nigeria (CBN) data. This follows a closing rate of N1,363.5/$ on Friday, reinforcing a trend of gradual appreciation in the official foreign exchange market.
The currency’s rise has been consistent, with the CBN reporting rates of N1,390.5/$ on Tuesday, N1,373.5/$ on Wednesday, and N1,370/$ on Thursday before reaching N1,355/$ on Monday. Intraday trading on Monday ranged between N1,365.35/$ and N1,354/$, indicating stable market activity throughout the session. This performance positions the naira at its strongest since February 23, 2026, when it closed at N1,353.5/$.
External global factors influenced the movement. The US dollar traded mixed on Tuesday, affected by geopolitical tensions involving Iran and their potential impact on global energy flows. In broader currency markets, the Euro declined 0.12% to $1.1492, Sterling fell 0.1% to $1.33, and the dollar index held steady at 99.913. The Australian dollar weakened slightly ahead of an anticipated interest rate decision by the country’s central bank, adding to a cautious international sentiment.
Domestically, the naira’s gains are supported by an improving external reserve position. The CBN stated that net foreign exchange reserves rose to $34.80 billion by the end of 2025, while gross reserves climbed to $50.45 billion as of February 2026. This growth is attributed to stronger oil earnings and increased foreign inflows. Central Bank Governor Olayemi Cardoso noted that ongoing monetary and foreign-exchange reforms aim to bolster market confidence and enhance liquidity. These efforts align with the CBN’s 2026 Macroeconomic Outlook, which projects external reserves to reach $51.04 billion in 2026, primarily driven by higher oil revenues.
The naira’s sustained appreciation reflects the impact of policy reforms and reserve accumulation. However, global economic uncertainties, including energy market volatility and geopolitical risks, may pose challenges. Continued vigilance from the CBN and market participants will be essential as Nigeria seeks to maintain stability in its foreign exchange regime amid shifting external conditions.
