On Wednesday March 4, 2026, the Nigerian naira maintained a narrow trading range against the US dollar in the early session of the Nigerian Foreign Exchange Market (NFEM), reflecting sustained demand for foreign exchange but also the stabilising effects of current monetary policy.
In official window trading, the naira opened at ₦1,379.05 per $1, dipping briefly to ₦1,376.02 before rebounding slightly. By 7:30 a.m. WAT, the rate was around ₦1,377.04 per dollar, underscoring a market in price discovery rather than sharp swings.
The Central Bank of Nigeria (CBN) has kept its closing reference rate near ₦1,384.29, representing a modest depreciation from February’s average of ₦1,364.74. Despite high demand for foreign exchange — driven in part by corporates and importers — the CBN’s “willing-buyer-willing-seller” model continues to temper extreme fluctuations and discourage speculative pressure.
In the parallel market, traders mirrored the official window’s trend, with the dollar changing hands in the range of ₦1,385 to ₦1,395, maintaining a relatively slim gap (about 1.2 %–1.5 %) between official and informal rates.
Analysts point to several factors shaping the exchange environment: the CBN’s decision to hold the Monetary Policy Rate (MPR) at 26.50 % following a recent 50-basis-point cut, resilient foreign exchange reserves, and steady crude oil output — averaging around 1.46 million barrels per day — which supports foreign currency inflows.
Market watchers expect the naira to remain within a tight trading band in the coming sessions, though they are keeping close attention on any new policy cues that could influence medium- to long-term currency stability.
