The Nigerian naira extended its recent recovery in the official foreign exchange market, closing at N1,355 per US dollar on Monday, March 17, according to Central Bank of Nigeria (CBN) data. This represents the currency’s strongest level since February 23, when it last traded around N1,353.5.
The appreciation from Friday’s close of N1,363.5 continued a steady upward trend observed over the past week, reversing the sharp early-month volatility that saw the naira weaken to N1,425 on March 10 the weakest point since mid-January.
Trading on Monday showed relative stability, with the intraday range between N1,365.35 and N1,354, reflecting improved dollar supply and calmer market sentiment compared with the previous week’s turbulence.
The sequential gains over recent sessions have been consistent:
– Tuesday (March 11): N1,390.5
– Wednesday: N1,373.5
– Thursday: N1,370
– Friday: N1,363.5
– Monday: N1,355
The rebound has erased much of the early-March depreciation and signals short-term resilience in the official market, supported by tighter liquidity management and inflows.
The CBN attributes the improved stability to strengthening external buffers. Net foreign exchange reserves stood at $34.80 billion by the end of 2025, while gross reserves reached $50.45 billion as of February 2026 bolstered by firmer oil earnings and rising foreign inflows. Governor Olayemi Cardoso has highlighted ongoing monetary and FX reforms as key to building market confidence and enhancing liquidity.
The CBN’s 2026 Macroeconomic Outlook projects gross reserves could climb further to $51.04 billion this year, driven largely by sustained higher oil revenues amid elevated global crude prices.
Globally, the US dollar traded mixed in early sessions on Tuesday, with the dollar index holding steady around 99.913. The euro eased slightly to $1.1492 and sterling dipped to $1.33, while broader currency movements remained subdued amid ongoing geopolitical uncertainties in the Middle East and anticipation of central bank decisions elsewhere.
For now, the naira’s rally points to a more supportive FX environment domestically, though analysts caution that sustained gains will depend on continued inflows, reserve build-up, and the absence of renewed external shocks. If momentum holds, the currency could test even firmer levels in the coming sessions.
