The naira closed stronger at N1,363.5 per dollar at the official foreign exchange market on Friday, rebounding after a sharp depreciation recorded at the beginning of the week.
Data published on the website of the Central Bank of Nigeria (CBN) showed that the local currency experienced notable volatility during the trading week, weakening sharply on Monday before gradually recovering in subsequent sessions.
The naira opened the week on a weak note, falling to N1,425 per dollar on Monday from N1,398 per dollar recorded the previous Friday. The decline marked the currency’s weakest closing level since January 12, 2026, when it last traded at the same rate.
However, the currency began to regain strength from Tuesday, appreciating to N1,390.5 per dollar. The recovery continued on Wednesday when the naira strengthened further to N1,373.5 per dollar.
By Thursday, the exchange rate improved slightly to N1,370 per dollar, before extending the gains on Friday to close at N1,363.5 per dollar. The movement represents a rebound of more than N60 within four trading sessions after the sharp early-week slide.
The recovery suggests improved dollar supply conditions in the foreign exchange market following earlier pressure driven by heightened demand for foreign currency.
The development contrasts with the relatively stable performance recorded in the preceding week, when the naira traded within a narrower band at the official market.
During that period, the currency opened at N1,376 per dollar on Monday and weakened to N1,390 per dollar on Tuesday. It later strengthened to N1,382.65 per dollar on Wednesday before trading at N1,388 per dollar on Thursday and closing the week slightly weaker at N1,398 per dollar on Friday.
According to the Central Bank of Nigeria, the country’s improving external reserve position could help cushion the naira against prolonged pressure.
The apex bank said Nigeria’s net foreign exchange reserves rose to $34.80 billion at the end of 2025, reflecting improved external liquidity, while the country’s gross external reserves climbed to $50.45 billion as of February 2026, supported by stronger oil earnings and increased foreign inflows.
The Governor of the Central Bank of Nigeria, Olayemi Cardoso, said ongoing monetary and foreign-exchange reforms are designed to strengthen market confidence and improve liquidity.
Projections contained in the CBN’s 2026 Macroeconomic Outlook indicate that Nigeria’s external reserves could rise further to about $51.04 billion in 2026, largely driven by higher oil revenues.
Meanwhile, global financial markets continue to react to geopolitical tensions in the Middle East and shifting expectations over the strength of the U.S. dollar, factors that have contributed to fluctuations in oil prices and currency movements worldwide.
