Naira Strengthens to N1,337/$ Amid Global Peace Talks: What It Means for Nigeria’s Currency Market

The Nigerian Naira has shown signs of recovery, strengthening to N1,337 per U.S. dollar at the official foreign exchange market on Tuesday, up from N1,344 on Monday, according to the latest data from the Central Bank of Nigeria (CBN). This marks the currency’s strongest official closing rate since May 29, 2024, when it traded at N1,329.65 per dollar, signaling renewed optimism in Nigeria’s currency market.

Analysts attribute the appreciation to a combination of improved dollar liquidity, positive shifts in the parallel market, and evolving global geopolitical developments. The parallel market also reflected these gains, with the Naira trading at N1,382.5 per dollar, down from N1,393.35 on Monday, suggesting short-term stability supported by better supply conditions and calmer investor sentiment.

Global events have played a significant role in bolstering investor confidence. Recent diplomatic discussions between Iran and the United States, along with ongoing negotiations between Ukraine and Russia, helped ease geopolitical tensions, improving global risk appetite. At the same time, the U.S. dollar remained broadly stable as investors awaited signals from the Federal Reserve, including potential interest rate adjustments and upcoming GDP data.

Domestically, the CBN continues to maintain a strategic approach to currency and monetary policy. Governor Olayemi Cardoso emphasized Nigeria’s role in advancing Africa’s single currency agenda, while the central bank prepares for its 304th Monetary Policy Committee (MPC) meeting on February 23–24, 2026. Previous MPC actions, including maintaining the Monetary Policy Rate at 27% and adjusting the asymmetric corridor, aim to curb inflation and stabilize the foreign exchange market.

For Nigerians and investors, the strengthening of the Naira offers a breath of relief in a market that has faced prolonged volatility. While challenges remain, improved foreign exchange supply, coupled with supportive global developments, may provide a short-term cushion for businesses and individuals relying on dollar transactions, signaling cautious optimism for the months ahead.

source: nairametrics