Naira Strengthens to N1,355 per Dollar as Nigeria’s Forex Market Shows Signs of Stability

The Nigerian naira continued its upward trend on Monday, appreciating to N1,355 per U.S. dollar at the official foreign exchange market, compared to N1,363.5/$ recorded on Friday. This marks the naira’s strongest performance since February 23, 2026, reflecting a gradual but steady recovery in recent weeks.

Market data shows that the naira has consistently strengthened in the past week, appreciating to N1,390.5/$ on Tuesday and N1,373.5/$ on Wednesday. Thursday saw the currency rise to N1,370/$, before closing Friday at N1,363.5/$. During Monday’s session, the naira traded between N1,365.35/$ and N1,354/$, indicating relatively stable intraday activity.

Analysts noted that global economic movements played a role in the naira’s performance. Investors closely tracked fluctuations in the U.S. dollar, geopolitical tensions involving Iran, and other global developments affecting energy markets. Early Asian trading also saw the euro dip by 0.12% to $1.1492, while the British pound fell 0.1% to $1.33, contributing to cautious sentiment worldwide.

The Central Bank of Nigeria (CBN) highlighted that Nigeria’s improving foreign reserves have helped stabilize the naira. Net foreign exchange reserves rose to $34.80 billion at the end of 2025, while gross external reserves reached $50.45 billion by February 2026, supported by stronger oil earnings and higher foreign inflows. Governor Olayemi Cardoso emphasized that ongoing monetary and forex reforms aim to increase investor confidence and enhance market liquidity.

Looking ahead, the CBN’s 2026 macroeconomic outlook predicts that Nigeria’s external reserves could rise further to $51.04 billion, largely driven by improved oil revenues. With both domestic reforms and favorable global conditions, experts say the naira may continue to gain strength in the coming months, offering relief to businesses and households dependent on foreign currency.

source: punch