The naira extended its appreciation at the official foreign exchange market on Monday, strengthening to N1,355/$ from N1,363.5/$ recorded on Friday, according to data from the Central Bank of Nigeria.
The latest gain underscores a sustained recovery trend for the local currency over the past week, supported by relatively stable market conditions.
Monday’s performance marks the naira’s strongest level since February 23, 2026, when it closed at N1,353.5/$.
CBN data showed a steady appreciation through the week. The currency firmed to N1,390.5/$ on Tuesday, strengthened further to N1,373.5/$ on Wednesday, and closed at N1,370/$ on Thursday before improving to N1,363.5/$ on Friday and N1,355/$ on Monday.
Intraday trading on Monday ranged between N1,365.35/$ and N1,354/$, reflecting relatively stable market activity.
Analysts attribute the naira’s performance partly to external developments, including mixed movements in the US dollar and heightened geopolitical tensions involving Iran, which investors are closely watching for their potential impact on global energy markets.
In the international currency market, the euro slipped 0.12 per cent to $1.1492 in early Asian trading, while the British pound eased 0.1 per cent to $1.33. The dollar index remained largely unchanged at 99.913, signalling cautious investor sentiment.
Meanwhile, Australia’s dollar edged lower ahead of an anticipated interest rate decision, adding to broader uncertainty across global markets.
The CBN noted that Nigeria’s improving external reserves position could provide support for the naira. Net foreign exchange reserves rose to $34.80 billion at the end of 2025.
Gross external reserves also increased to $50.45 billion as of February 2026, buoyed by stronger oil earnings and higher foreign inflows.
CBN Governor Olayemi Cardoso said ongoing monetary and foreign exchange reforms are aimed at boosting market confidence and improving liquidity.
According to projections in the apex bank’s 2026 macroeconomic outlook, external reserves could rise further to $51.04 billion this year, largely driven by improved oil revenues.
