The naira strengthened to N1,345 per dollar at the official foreign exchange market on Tuesday, marking its highest level in one month and extending its recent recovery trend.
Data from the Central Bank of Nigeria (CBN) showed the local currency improved from N1,355/$ recorded on Monday, reflecting sustained gains in the FX market.
Tuesday’s closing rate represents the naira’s strongest performance since February 18, 2026, when it settled at N1,340/$. The development points to growing stability and improved liquidity conditions in the market.
During the trading session, the currency traded within a relatively narrow band of N1,340/$ to N1,355/$, with a simple average rate of N1,344.55/$. This tighter range suggests reduced volatility compared to previous weeks.
The latest appreciation underscores a continued upward trajectory for the naira, supported by better foreign exchange supply dynamics.
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Meanwhile, Nigeria’s external reserves recorded a marginal decline, dropping to $49.86 billion from $50.45 billion in February. While this indicates ongoing adjustments in the country’s FX buffers, reserves remain a critical support for currency stability.
Despite the dip in reserves, the naira’s performance signals improved confidence and supply conditions in the market.
On the global stage, currency markets traded mixed as investors weighed geopolitical risks and awaited key monetary policy decisions. The U.S. dollar index stood at 99.56 after a recent decline, while the euro remained largely flat at $1.1538. The Japanese yen strengthened to 158.91 per dollar, reflecting cautious investor sentiment, and the British pound held steady at $1.3353.
The dollar had earlier surged to a 10-month high amid safe-haven demand linked to escalating tensions in the Middle East.
Attention is now focused on the Federal Reserve, which is expected to announce its policy decision on Wednesday. Other major central banks—including the European Central Bank, Bank of England, and Bank of Japan—are also set to release their policy decisions, with markets largely anticipating a hold on interest rates.
Investors will be watching closely for signals on inflation trends and the broader economic outlook, which could shape global currency movements in the coming weeks.
