The Nigerian naira appreciated to N1,365 per US dollar on Thursday, March 9, 2026, extending gains amid a broader global decline in the greenback.
According to data from the Central Bank of Nigeria (CBN) website, the local currency strengthened from N1,369 per dollar recorded on Wednesday, reflecting improved sentiment in international currency markets.
The movement comes as the US dollar is on track for its largest weekly drop since January, driven by optimism that a ceasefire in the Gulf will hold and allow oil shipments to resume through the Strait of Hormuz.
Further direction for the naira is expected to hinge on the outcome of ongoing diplomatic talks between the United States and Iran in Islamabad.
The naira’s appreciation aligns with a broader weakening of the US dollar across global markets. The US Dollar Index has fallen by 1.3% this week as investors unwind safe-haven positions following the ceasefire agreement.
On Thursday, the naira traded within a range of N1,351.50 to N1,365 per dollar, with an average rate of N1,359.90. Nigeria’s external reserves, however, continued to decline, falling to $48.89 billion from $49.18 billion at the start of April.
Major currencies gained against the dollar during the week. The euro traded at $1.1690, while the Australian and New Zealand dollars posted weekly gains of nearly 3%.
The weakening dollar reflects easing geopolitical tensions and expectations of improved oil supply flows. The US-Israel conflict with Iran had earlier driven oil prices higher, pressured global equities, and increased inflation concerns, prompting investors to shift toward the dollar as a safe-haven asset.
Since the ceasefire agreement earlier this week, these positions have begun to unwind, leading to a broad-based dollar decline. However, uncertainty remains, as shipping activity through the Strait of Hormuz is still below normal levels, with only a few vessels passing through compared to about 140 ships daily before the conflict.
The British pound rose by 1.8% this week to $1.3424, breaking above its 200-day moving average. The Japanese yen remained under pressure but traded slightly above recent lows at 159.2 per dollar. China’s yuan strengthened to 6.83 per dollar in offshore trading, its highest level since 2023.
These movements indicate a broader shift away from safe-haven assets toward risk-sensitive currencies as geopolitical tensions ease.
Despite the recent reserve decline, the CBN had projected a positive outlook for Nigeria’s external reserves, expecting them to rise to $51.04 billion in 2026 from $45.01 billion in 2025. The projected increase is expected to be supported by higher oil earnings, sovereign bond issuances, and increased diaspora remittances.
The naira’s performance this week suggests that easing global tensions and improving sentiment could provide short-term support for the currency, although sustained stability will depend on oil price trends, reserve management, and the outcome of diplomatic efforts in the Middle East.
