Naira Slides Again as Nigeria’s Forex Reserves Drop: CBN Moves to Boost Currency Liquidity

Nigeria’s currency, the Naira, recorded its second consecutive weekly decline against the US dollar, closing at N1,380.58 in the official foreign exchange market on Friday. Despite minor daily gains, the week-on-week loss of N21.68 underscores the ongoing pressure on the currency, fueled by dwindling foreign reserves that limit the Central Bank of Nigeria’s (CBN) ability to support the Naira.

Throughout the week, the Naira showed slight daily fluctuations, appreciating by N3.30 from Thursday’s N1,383.88, while posting an overall 0.56 percent weekly gain from Monday’s opening quote of N1,388.38. However, the parallel market told a different story, with the Naira weakening to N1,415 per dollar, widening the gap between official and unofficial rates to N35, up from N29 a week earlier.

The slide in the Naira coincides with a sustained drop in Nigeria’s external reserves, which fell for the ninth straight day to $49.48 billion as of March 26, 2026. Analysts say the reserve decline, which amounts to $540 million over two weeks, has intensified market anxiety and created a need for immediate policy interventions to stabilize the currency.

In response, the CBN introduced measures aimed at improving FX liquidity. Notably, International Oil Companies (IOCs) can now repatriate 100 percent of export proceeds immediately, a shift from the previous 50 percent pooling rule. The move is expected to boost foreign currency inflows and enhance competitiveness in the FX market, while attracting more foreign investment into Nigeria.

Additionally, the CBN issued new guidelines for International Money Transfer Operators (IMTOs), requiring remittances to flow through designated naira settlement accounts. Effective May 1, 2026, the regulations aim to increase transparency, improve monitoring of diaspora inflows, and ensure pricing discipline by referencing real-time rates. Combined, these interventions highlight the CBN’s strategy to strengthen the Naira, reduce parallel market leaks, and restore investor confidence in Nigeria’s FX system.

source: Business day