The Naira weakened to N1,389 per dollar as the country’s external reserves declined by about $850 million within three weeks.
This is according to data from the Central Bank of Nigeria’s (CBN) website on Tuesday.
The development comes amid global currency volatility triggered by geopolitical developments and shifting investor sentiment.
Intraday trading showed the currency fluctuating between N1,381/$ and N1,390/$, with an average rate of N1,386.3/$, reflecting mild pressure in the foreign exchange market.
What the data is saying
The latest data highlights movements in Nigeria’s exchange rate and external reserves.
- The naira weakened to N1,389/$ from N1,382.75/$ recorded before the Easter break.
- Intraday trading ranged between N1,381/$ and N1,390/$, with an average rate of N1,386.3/$.
- NFEM interbank turnover stood at 48,655,051.7800, with a total of 71 deals recorded.
- External reserves declined by about $850 million within three weeks, falling to $49.18 billion between March 11 and April 2, 2026.
These figures indicate sustained pressure on the naira and a reversal of earlier gains in Nigeria’s external reserves.
More Insights
Global currency markets reacted strongly to geopolitical developments involving the United States and Iran. The U.S. dollar weakened broadly after Donald Trump announced a two-week ceasefire agreement with Iran, boosting investor confidence.
- The Japanese yen strengthened by 0.7% to 158.50 per dollar.
- The euro gained 0.7% to $1.1677, while the British pound rose 0.8% to $1.3403.
- The Australian dollar climbed 1.2% to $0.7063, and the New Zealand dollar increased 1.1% to $0.5795.
- The U.S. dollar index fell to 98.943, its lowest level since March 11, extending a three-day decline.
The easing of tensions followed earlier threats by the U.S. president, which had raised concerns about potential disruptions to global supply chains before the ceasefire announcement restored market calm.
What you should know
Earlier, Nairametrics reported OPEC+ raised its oil production quota by 206,000 barrels per day (bpd) for May 2026.
OPEC+ had been gradually unwinding production cuts since 2025 to regain market share, raising quotas by 2.9 million bpd between April and December 2025 before pausing increases in early 2026.
Nairametrics earlier reported that OPEC+ had decided to pause its planned oil supply increases through the first quarter of 2026.
Nigeria’s external reserves had recently reached a multi-year high before the current decline.
- CBN Governor Olayemi Cardoso stated that reserves rose to $50.45 billion as of February 16, 2026.
- This marked the highest level recorded in 13 years, supported by improved inflows and policy reforms.
- The recent drop has raised concerns among market participants about the sustainability of reserve growth.
The decline in reserves and weakening of the naira signal emerging pressures on Nigeria’s external position despite earlier positive momentum.
