Data from the Central Bank of Nigeria (CBN) shows the naira weakened to N1,389/$ on Tuesday, as external reserves declined by about $850 million within three weeks.
The currency came under mild pressure amid global volatility driven by geopolitical tensions and shifting investor sentiment.
Intraday trading saw the naira fluctuate between N1,381/$ and N1,390/$, with an average rate of N1,386.3/$—underscoring a relatively tight but pressured trading band. This compares with N1,382.75/$ recorded before the Easter break.
Activity in the NFEM window remained moderate, with interbank turnover at 48.66 million across 71 deals.
On the reserves side, CBN data shows a decline to $49.18 billion between March 11 and April 2, 2026—reversing part of the recent build-up and signalling renewed pressure on Nigeria’s external buffers.
Global currency markets also reacted to geopolitical developments involving the United States and Iran. The U.S. dollar weakened broadly after former U.S. President Donald Trump announced a two-week ceasefire agreement with Iran, lifting investor sentiment.
As a result, the Japanese yen strengthened by 0.7% to 158.50/$, the euro rose 0.7% to $1.1677, and the British pound gained 0.8% to $1.3403. The Australian and New Zealand dollars also appreciated by 1.2% and 1.1%, respectively. The U.S. dollar index slipped to 98.943—its lowest level since March 11—extending a three-day decline.
The easing of tensions followed earlier concerns that had raised fears of supply chain disruptions before the ceasefire restored a measure of market calm.
Nigeria’s reserves had recently hit a multi-year high. CBN Governor Olayemi Cardoso noted that reserves climbed to $50.45 billion as of February 16, 2026—the highest level in 13 years—supported by improved inflows and ongoing reforms.
However, the latest decline has raised fresh concerns over the sustainability of reserve growth, with analysts pointing to emerging pressures on the naira despite earlier positive momentum.
