The Nigerian Naira recorded its first appreciation against the US dollar at the official foreign exchange market on Tuesday, February 18, reversing a two-day decline. Data from the Central Bank of Nigeria (CBN) showed the currency strengthened to N1,382.63 per dollar, up from N1,388.38 the previous day. This represents a gain of N5.75 on a day-to-day basis, following a loss of N34.48 on Monday.
The improvement at the regulated market contrasts with stability in the parallel segment. Multiple Bureau de Change operators in Wuse Zone 4, Abuja, reported the black-market rate remained unchanged, trading between N1,410 and N1,412 per dollar—identical to Monday’s quote. This persistent gap highlights the enduring spread between official and informal exchange rates.
The movement occurs amid a slight decline in Nigeria’s foreign reserves. CBN figures indicate reserves fell to $49.61 billion as of March 23 from $49.78 billion on March 18. While the decrease of $170 million is modest, foreign reserve levels are closely watched as a key indicator of the country’s ability to defend the naira and meet external payment obligations.
This recent volatility follows a pause in the naira’s earlier rally. The currency had been gaining ground in the official market in the weeks prior but halted its upward trajectory in the session immediately before the Eid-ul-Fitr holidays. Trade resumed with the noted depreciation on Monday before Tuesday’s partial recovery.
The naira’s performance remains a critical focal point for Nigeria’s inflation outlook and import-dependent sectors. The stabilization after a sharp drop may offer temporary relief, though the sustained premium in the black market and the marginal dip in reserves underscore underlying pressures in the foreign exchange market. Analysts suggest that consistent liquidity injection and policy credibility will be key to narrowing the rate disparity and fostering lasting stability. The CBN’s next interventions will be closely monitored for signs of a sustained trend or further oscillation.
