The naira strengthened to close at N1,363.5 per dollar at the official foreign exchange market on Friday, rebounding after a sharp depreciation at the start of the week.
Data tracked by Nairametrics on the Central Bank of Nigeria’s (CBN) website shows that the currency experienced significant volatility during the week, weakening sharply on Monday before gradually recovering over subsequent trading sessions.
The turnaround highlights improving supply conditions in the foreign exchange market after earlier pressure triggered by heightened demand for dollars.
What the data is saying
The naira opened the week on a weak footing before staging a steady recovery toward the end of the trading week.
- The currency fell to N1,425 per dollar on Monday, down from N1,398 per dollar recorded the previous Friday.
- Nairametrics reports that Monday’s slip marks the naira’s weakest closing level since January 12, 2026, when it last traded at the same rate.
- By Tuesday, the naira appreciated to N1,390.5 per dollar.
- Further gains were recorded on Wednesday, when the currency traded at N1,373.5 per dollar.
- The recovery continued on Thursday, with the naira strengthening to N1,370 per dollar.
The currency extended the recovery on Friday, closing at N1,363.5 per dollar, representing a rebound of more than N60 within four trading days after the early-week slide.
Get up to speed
The movement follows a relatively stable trading pattern recorded in the preceding week when the naira traded within a narrower band at the official market.
- The currency opened that week at N1,376 per dollar on Monday.
- It traded at N1,390 per dollar on Tuesday before strengthening to N1,382.65 per dollar on Wednesday.
- By Thursday, the naira exchanged at N1,388 per dollar.
- It later closed the week slightly weaker at N1,398 per dollar on Friday.
The early-week depreciation in the current trading cycle, therefore, marked a notable break from the relative stability seen in the previous week.
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.
- Global markets have been reacting to geopolitical tensions in the Middle East and shifting expectations around the strength of the U.S. dollar. The uncertainty has contributed to fluctuating oil prices and currency movements.
