The Nigerian naira depreciated further against the United States dollar on Tuesday, 31 March 2026, as foreign exchange benchmarks declined across both official and parallel markets. The downward movement coincided with the expiration of the Central Bank of Nigeria’s deadline for commercial bank recapitalization and a continued reduction in the country’s external reserves.
According to Central Bank trading data, the local currency settled at ₦1,386.72 per dollar on the official foreign exchange window, down from ₦1,383.58 recorded the previous trading day. The daily movement reflects a ₦3.13 loss in value, extending recent adjustments in the regulated market. Exchange rate volatility has remained under close observation since Nigeria implemented a unified, market-driven currency framework in 2023, which consolidated multiple official trading windows.
Activity in the informal market followed a similar trajectory. The naira traded at approximately ₦1,420 per dollar on Tuesday, a ₦5 decline from Monday’s ₦1,415 rate. Concurrently, official reserve figures showed a reduction in foreign assets, falling to $49.29 billion as of 30 March from $49.44 billion reported on 27 March. Reserve levels serve as a primary indicator of a central bank’s capacity to support external payments and manage domestic currency supply.
The current exchange rate movement follows the conclusion of the Central Bank’s banking sector capitalization requirement. The apex bank confirmed that 32 commercial institutions successfully met the revised equity thresholds. The initiative was designed to strengthen financial institutions, expand balance sheets, and increase the capacity of domestic banks to mobilize foreign exchange for commercial trade and international settlements.
Market participants and regulatory authorities will monitor how the newly capitalized institutions approach foreign exchange liquidity management in the coming months. The Central Bank is expected to maintain routine oversight of exchange rate trends while evaluating how structural banking adjustments intersect with broader macroeconomic indicators. Ongoing currency performance will continue to reflect reserve movements, international dollar dynamics, and domestic monetary policy implementation.
