By Boluwatife Oshadiya | March 13, 2026
Key Points
- Naira appreciates to ₦1,371.51/$ at the official Nigerian FX market window
- Parallel market rate strengthens to ₦1,390/$ amid improved dollar liquidity
- Nigeria’s external reserves exceed $50 billion, the highest level since 2009
Main Story
Nigeria’s currency strengthened across both official and informal foreign exchange markets on Thursday as improved dollar liquidity supported renewed confidence in the naira.
Data from the Nigerian Foreign Exchange Market (NFEM) showed the naira appreciated by 0.34% to close at ₦1,371.51 per dollar at the official window.
In the parallel market, the local currency also gained ground, strengthening by 0.21% to trade around ₦1,390 per dollar, reflecting improving sentiment in the broader foreign exchange environment.
According to the Central Bank of Nigeria (CBN) daily FX report, the naira traded within a range of ₦1,362 to ₦1,390 per dollar during the session.
Market analysts attribute the stronger performance to increased dollar inflows from foreign investors, exporters, and corporate participants, as well as recent liquidity interventions by the CBN aimed at stabilising the FX market.
Nigeria’s gross external reserves have also climbed above $50 billion, marking their highest level since 2009, a development economists say provides a stronger buffer for currency stability.
The improvement in dollar supply has helped narrow volatility at the official window, while also easing pressure in the parallel market, where demand had previously surged amid limited access to foreign currency.
Globally, however, the US dollar strengthened against major currencies, supported by rising energy prices and geopolitical tensions in the Middle East.
The euro weakened for a third consecutive day, as investors moved toward the dollar amid concerns that higher oil prices could strain Europe’s import-dependent economy.
Crude oil prices have risen sharply following escalating tensions in the Middle East, where Iran has intensified attacks on oil and transport infrastructure, raising fears of disruptions to global energy supply.
Iran’s Supreme Leader Mojtaba Khamenei also warned on Thursday that the Strait of Hormuz could be closed, a move that would significantly affect global oil shipments.
What’s Being Said
“The naira’s recent appreciation reflects stronger FX inflows and improved confidence following the central bank’s liquidity measures,” said Bismarck Rewane, Chief Executive Officer of Financial Derivatives Company.
“With external reserves now above $50 billion, the CBN has more room to smooth volatility and maintain stability in the official market,” Rewane added.
Currency analysts at Afrinvest Securities also noted that improved participation from foreign investors is gradually rebalancing dollar supply and demand dynamics in Nigeria’s FX market.
What’s Next
- Analysts expect the CBN to continue managing FX liquidity through targeted interventions if volatility returns.
- Economists will monitor foreign portfolio inflows and oil export earnings, both of which influence Nigeria’s dollar supply.
- Market forecasts suggest the naira could approach ₦1,300 per dollar in the first half of 2026 if reserves remain strong and inflows continue.
