The naira appreciated against the United States dollar at the official foreign exchange market this week, closing stronger on Monday compared to levels recorded at the start of last week.
This is according to data from the Central Bank of Nigeria’s (CBN) website on Monday.
The CBN data shows the currency closed at N1,354.9 per dollar on Monday, improving from N1,384.5 per dollar recorded on the corresponding Monday of the previous week.
The movement comes ahead of the Central Bank of Nigeria’s 304th Monetary Policy Committee (MPC) meeting later in February, its first in 2026, as authorities seek to stabilise the foreign exchange market and manage inflationary pressures.
What the data is saying
Official exchange rate data indicates that the naira experienced mixed but overall positive movements during the week under review.
- The naira closed at N1,354.9 per dollar at the official market on Monday. This is up from last Friday’s closure at N1,363 per dollar.
- This compares favourably with last week Monday’s closing rate of N1,384.5 per dollar.
- The movement represents an appreciation of nearly N30 per dollar on a week-on-week basis.
Checks by Nairametrics reveal this is the currency’s best performance since it closed at N1,329.65/$ on May 29, 2024.
Despite the improvement at the official window, pressure remains visible across other segments of the foreign exchange market.
More Insights
In the parallel market, the naira continued to trade significantly weaker than the official rate, reflecting persistent liquidity and demand challenges.
- The gap between both markets widened during the period, highlighting ongoing distortions in foreign exchange pricing.
- The naira traded at N1,443.40 per dollar in the parallel market, compared to N1,440.81 per dollar previously.
- This resulted in an official–parallel market disparity of about N88.5.
- The spread is the widest recorded since 29 January 2026, when it peaked at N105.00.
The widening gap underscores the challenges in fully aligning rates across market segments.
The disparity remains a key indicator watched by investors and policymakers as authorities continue efforts to improve transparency and liquidity in the foreign exchange market.
What you should know
The recent movements in the naira come ahead of the Central Bank of Nigeria’s next Monetary Policy Committee meeting.
- The MPC is expected to review monetary conditions, inflation trends, and foreign exchange developments at the meeting.
- The CBN has announced that its 304th MPC meeting will hold on Monday and Tuesday, February 23 and 24, 2026.
- At its last MPC meeting in November 2025, the committee retained the Monetary Policy Rate at 27 percent.
The decision reflected the apex bank’s continued restrictive monetary stance aimed at curbing inflation and stabilising the naira.
Earlier, at the 302nd MPC meeting in September 2025, the committee reduced the MPR by 50 basis points, from 27.5 percent to 27 percent.
