By Boluwatife Oshadiya | March 31, 2026
Key Points
- Naira depreciates to ₦1,383.58/$ at official FX window
- Interbank FX turnover declines amid reduced deal volume
- Parallel market rate weakens to ₦1,425/$
Main Story
The naira weakened by 0.22 per cent to ₦1,383.58 per dollar at the official foreign exchange window on Monday, as interbank FX turnover declined, according to data from the Central Bank of Nigeria.
Total FX transactions among authorised dealers fell to ₦142.29 million, with 115 deals recorded—down from 141 deals in the previous session. The currency traded within a range of ₦1,380 to ₦1,391 during the session.
In the parallel market, the naira depreciated further to ₦1,425 per dollar, reflecting sustained demand pressures across both official and informal FX segments.
Despite recent depreciation, the spread between official and parallel market rates narrowed to ₦39.42, indicating some level of convergence. Meanwhile, Nigeria’s external reserves declined slightly to $49.48 billion.
Global oil prices surged sharply amid escalating geopolitical tensions involving the United States and Iran, with Brent crude rising above $112 per barrel—its strongest monthly performance on record.
The Issues (Optional)
Persistent FX demand, limited dollar supply, and external shocks continue to pressure the naira. While rising oil prices could improve FX inflows, volatility in global markets and geopolitical risks may offset potential gains.
What’s Being Said
“FX demand pressures remain elevated despite recent policy interventions,” a currency trader at a Lagos-based bank said.
“Higher oil prices could support reserves, but stability depends on sustained inflows and policy consistency,” the trader added.
What’s Next
- CBN expected to sustain FX market interventions
- Oil price trends to influence FX inflows and reserves
- Market participants to monitor geopolitical developments
Bottom Line (Optional)
The Bottom Line: The naira’s trajectory remains tightly linked to FX liquidity and external shocks, with oil price gains offering only partial relief in a structurally constrained market.
