Naira Weakens to ₦1,389 Against the Dollar Following US-Iran-Israel Ceasefire
The Nigerian naira depreciated to ₦1,389 against the US dollar on Tuesday, marking a reversal of earlier gains recorded before the Easter break. According to data from the Central Bank of Nigeria (CBN), the local currency weakened from ₦1,382.75/$ to ₦1,389/$, reflecting renewed pressure on Nigeria’s foreign exchange market.
Intraday trading saw the naira fluctuating between ₦1,381/$ and ₦1,390/$, with an average exchange rate of ₦1,386.30/$. The depreciation followed the announcement of a two-week temporary ceasefire between the United States, Israel, and Iran—a development that initially boosted global currency markets but also exposed underlying vulnerabilities in Nigeria’s forex position.
Global markets responded positively to the easing of geopolitical tensions. The Japanese yen strengthened by 0.7%, trading at 158.50 per dollar. The euro gained 0.7% to $1.1677, while the British pound rose 0.8% to $1.3403. The Australian and New Zealand dollars also appreciated, climbing 1.2% and 1.1% respectively.
Meanwhile, the US dollar index fell to 98.943, its lowest level since March 11, extending a three-day decline. The shift came after earlier threats by the US president had raised concerns about potential disruptions to global supply chains, before the ceasefire announcement helped restore market calm.
The naira’s slide underscores sustained pressure on Nigeria’s external reserves, which declined by approximately $850 million over three weeks—falling to $49.18 billion between March 11 and April 2, 2026. This decline signals ongoing challenges for Nigeria’s foreign exchange liquidity amid global volatility and domestic economic pressures.
As the ceasefire holds, market watchers will be closely monitoring the CBN’s next moves to stabilise the naira and rebuild reserves in the face of persistent external headwinds.
