Naira Strengthens to N1,348/$ as U.S. Dollar Slips to Six-Week Low Amid Global Market Shift

The naira appreciated to N1,348 per dollar on Tuesday in the official foreign exchange market, marking a mild but notable gain as the U.S. dollar weakened to its lowest level in six weeks. The movement reflects shifting global investor sentiment rather than purely domestic factors.

According to data from the Central Bank of Nigeria (CBN), the naira strengthened from N1,358/$ recorded on Monday, extending gains seen in recent trading sessions. However, despite the improvement in exchange rates, Nigeria’s external reserves continued to decline, standing at $48.72 billion as of April 13, 2026, down from $49.18 billion earlier in the month.

The rally in the naira aligns with broader weakness in the U.S. dollar index, which fell to 98.109. Analysts link this to improved global risk appetite following renewed expectations of diplomatic discussions between the United States and Iran, easing earlier geopolitical tensions that had weighed on markets.

Global financial markets responded positively to the shift, with currencies like the euro and British pound gaining strength, while crude oil prices retreated after earlier spikes caused by disruptions around the Strait of Hormuz. Risk assets such as equities and cryptocurrencies also saw renewed inflows as investors moved away from safe-haven assets like the dollar.

Meanwhile, the International Monetary Fund (IMF) has revised Nigeria’s 2026 growth forecast downward to 4.1%, reflecting broader global economic slowdown concerns. Despite this, the CBN maintains an optimistic outlook, projecting that Nigeria’s external reserves could rise to $51.04 billion in 2026, supported by improved inflows and policy stability.

source: nairametrics