Naira extends rally to N1,355/$, strongest in four weeks

The currency recorded steady gains over the past week, reflecting a consistent appreciation trend in the official market:

• On Tuesday, it strengthened to N1,390.5/$.
• By Wednesday, it appreciated further to N1,373.5/$.
• On Thursday, the naira continued its upward movement, closing at N1,370/$.
• On Friday, it advanced to N1,363.5/$.
• On Monday, it extended the rally to N1,355/$.

The sequential gains highlight sustained momentum in the currency’s recent recovery.

More insights 

External factors continue to influence broader currency movements across global markets.

• The U.S. dollar traded mixed on Tuesday as investors monitored geopolitical tensions involving Iran and assessed potential implications for global energy flows.
• In early Asian trading, currency movements were subdued:
• The euro fell 0.12 per cent to $1.1492.
• Sterling declined 0.1 per cent to $1.33.
• The dollar index remained largely unchanged at 99.913, reflecting cautious market sentiment.
• In Australia, the dollar eased slightly ahead of an anticipated interest rate decision by the country’s central bank, contributing to broader market uncertainty.

What you should know 

The Central Bank of Nigeria says the country’s improving external reserve position could help cushion the naira against prolonged pressure.

• According to the apex bank, Nigeria’s net foreign exchange reserves rose to $34.80 billion at the end of 2025, reflecting improved external liquidity.
• The country’s gross external reserves climbed to $50.45 billion as of February 2026, supported by stronger oil earnings and increased foreign inflows.
• The governor of the central bank, Olayemi Cardoso, said ongoing monetary and foreign-exchange reforms are aimed at strengthening market confidence and improving liquidity.
• According to projections contained in the Central Bank of Nigeria 2026 Macroeconomic Outlook for Nigeria, the country’s external reserves could rise further to $51.04 billion in 2026, supported largely by higher oil revenues.

The naira’s sustained appreciation signals short-term strength in the official foreign exchange market and suggests improving stability in recent sessions.

If the current momentum continues, the currency could test stronger levels in the near term, particularly if liquidity conditions remain supportive.

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