The Nigerian naira staged a notable recovery in the official foreign exchange market last week, closing at N1,363.5 per US dollar on Friday, March 13, after a sharp early-week depreciation that saw it weaken to N1,425 on Monday.
Data from the Central Bank of Nigeria (CBN), tracked by Nairametrics, showed the currency experienced significant volatility during the trading week. It opened the period under pressure, sliding from the previous Friday’s close of N1,398 to N1,425 on Monday its weakest level since January 12, 2026. The dip reflected heightened dollar demand amid lingering liquidity constraints.
However, the naira began a steady climb from Tuesday onward:
Tuesday: N1,390.5
Wednesday: N1,373.5
Thursday: N1,370
Friday: N1,363.5
The rebound of more than N60 over four trading days highlighted improving supply conditions in the FX market, with the CBN’s interventions and inflows helping to ease pressure.
The week’s performance contrasted with the relative stability seen the prior week, when the naira traded in a narrower band between N1,376 (Monday open) and N1,398 (Friday close).
The turnaround comes amid supportive fundamentals. The CBN has pointed to strengthening external reserves net reserves at $34.80 billion by end-2025 and gross reserves reaching $50.45 billion as of February 2026 as a buffer against prolonged weakness. Governor Olayemi Cardoso has emphasized ongoing monetary and FX reforms aimed at enhancing market confidence and liquidity.
The CBN’s 2026 Macroeconomic Outlook projects gross reserves could rise further to $51.04 billion this year, driven largely by higher oil revenues and improved foreign inflows. While global factors such as geopolitical tensions in the Middle East and a firm US dollar continue to influence emerging market currencies, Nigeria’s improved external position has helped cushion the naira.
As of today, March 16, 2026, the official rate has held relatively steady in the low-to-mid N1,360 to N1,380 range in early trading, according to CBN and market sources, reflecting continued convergence and stability post-Friday’s close.
Market watchers will monitor whether the recovery sustains amid ongoing global uncertainties and domestic liquidity dynamics, but the week’s performance signals renewed resilience in the naira’s outlook.
