Naira Weakens Against Dollar in Parallel, Official Markets

The Nigerian Naira weakened sharply in the parallel foreign exchange market on Monday, falling to N1,370 per US dollar, according to Bureau de Change operators in Abuja. This marks a notable depreciation of N40 from the previous week’s range.

Abubakar Hassan, a Bureau de Change operator in Wuse Zone 4, Abuja, told Media Talk Africa that the local currency sold for between N1,317 and N1,330 per dollar last Friday. The Monday rate represents the first significant drop in the parallel market since the Central Bank of Nigeria (CBN) implemented a new policy on February 10, 2026, limiting weekly dollar sales to BDCs to a maximum of $150,000.

In the official foreign exchange market, CBN data showed a similar, though milder, decline. The Naira closed at N1,349.24 per dollar on Monday, down from N1,346.32 the previous session—a loss of N2.92.

The concurrent depreciation in both markets occurs despite a sustained increase in Nigeria’s external reserves. The CBN reported that gross reserves rose to $48.77 billion as of February 19, 2026. The divergence between rising reserves and a weakening currency underscores complex local dollar demand dynamics that persist independently of the country’s foreign asset position.

The monetary policy committee of the Central Bank of Nigeria is currently in a scheduled meeting to review economic conditions and announce fresh monetary policy measures. The committee’s decisions, expected later this week, are being closely watched for signals on how the apex bank intends to address exchange rate stability amid the current trend.

The Naira’s movement in the parallel market often influences broader inflation expectations and household purchasing power. The latest drop, coming after a period of relative stability under the CBN’s BDC sales cap, suggests persistent pressure on the local currency from underlying economic factors including liquidity constraints and demand for foreign exchange.