The naira strengthened against the United States dollar at the official foreign exchange market, opening the week on a firmer note compared with levels recorded at the start of the previous week.
Data published by the Central Bank of Nigeria (CBN) on Monday showed the local currency closing at N1,354.9 per dollar, improving from N1,384.5 per dollar recorded on the corresponding Monday last week.
The gain comes ahead of the apex bank’s 304th Monetary Policy Committee (MPC) meeting later in February — its first for 2026 — as policymakers continue efforts to stabilise the foreign exchange market and contain inflationary pressures.
Official exchange rate data indicate mixed but broadly positive movements over the review period. The naira’s Monday close of N1,354.9 per dollar also marked an improvement from last Friday’s N1,363 per dollar settlement.
On a week-on-week basis, the movement represents an appreciation of nearly N30 per dollar — the currency’s strongest performance since it closed at N1,329.65 per dollar on May 29, 2024.
Despite the rebound at the official window, pressures persisted across other market segments. In the parallel market, the naira traded significantly weaker, underscoring lingering liquidity constraints and demand pressures.
The currency exchanged at N1,443.40 per dollar in the parallel market, compared with N1,440.81 previously. This widened the gap between the official and informal markets to about N88.5 — the largest disparity since January 29, 2026, when the spread peaked at N105.
Analysts note that the divergence highlights ongoing distortions in foreign exchange pricing and remains a key indicator monitored by investors and policymakers amid attempts to deepen market transparency and liquidity.
Attention now shifts to the MPC meeting, where members are expected to assess monetary conditions, inflation trends and exchange rate dynamics in shaping policy direction for the months ahead.
