Naira strengthens to N1,345/$, hits highest level in one month

The naira appreciated to N1,345/$ at the official foreign exchange market on Tuesday, improving from N1,355/$ recorded on Monday.

This is according to data published on the Central Bank of Nigeria (CBN) website.

Checks by Nairametrics show that Tuesday’s closing rate represents the strongest level for the naira since February 18, 2026, when the currency closed at N1,340/$, signaling continued recovery in the foreign exchange market.

What the data is saying 

CBN data show that the naira traded within a relatively stable range during the trading session.

• The currency traded between N1,340/$ and N1,355/$ during intraday trading.
• The simple average exchange rate stood at N1,344.55/$.
• The closing rate of N1,345/$ reflects continued appreciation from recent levels.
• The performance extends the naira’s upward trend recorded in recent sessions.

The data indicate improved market stability, with reduced volatility compared to previous weeks.

More insights 

Nigeria’s external reserves recorded a slight decline during the period.

• Gross external reserves fell to $49.86 billion.
• This represents a drop from the $50.45 billion recorded in February.
• The movement suggests ongoing adjustments in foreign exchange buffers.
• External reserves remain a key indicator of the country’s capacity to support the naira.

Despite the decline, the naira’s appreciation suggests improved foreign exchange supply conditions in the market.

Get up to speed 

Global currency markets showed mixed movements as investors reacted to geopolitical developments and upcoming central bank decisions.

• The U.S. dollar index stood at 99.56 after a two-day decline.
• The euro traded largely flat at $1.1538 after recent gains.
• The Japanese yen strengthened to 158.91 per dollar, reflecting renewed investor caution.
• The British pound held steady at $1.3353.

The dollar had earlier reached a 10-month high as investors sought safe-haven assets amid escalating tensions in the Middle East, now in its third week.

Global market sentiment remains influenced by geopolitical tensions and key monetary policy decisions.

• The U.S. Federal Reserve is expected to announce its policy decision on Wednesday.
• The European Central Bank, Bank of England and Bank of Japan are also set to announce policy decisions.
• Markets expect most central banks to hold interest rates steady.
• Investors are closely watching for guidance on inflation and the economic outlook.

What you should know 

• Nairametrics earlier reported that the naira continued its upward momentum on Monday, appreciating to N1,355/$ at the official foreign exchange market.
• At their first meeting of 2026, which concluded on January 28, 2026, the Federal Open Market Committee (FOMC) voted to keep the federal funds rate steady at a range of 3.5% to 3.75%.
• The Central Bank of Nigeria (CBN) reduced its Monetary Policy Rate to 26.5 per cent from 27 per cent at its 304th Monetary Policy Committee meeting.