By Boluwatife Oshadiya | March 19, 2026
Key Points
- Naira closes at N1,353/$ at official window amid FX demand pressure
- External reserves drop by $178 million to $49.83 billion
- Oil prices surge above $109/barrel on Middle East tensions
Main Story
The Nigerian naira weakened to N1,353 per dollar at the official foreign exchange window on Wednesday, as increased demand from eligible market participants and declining external reserves intensified pressure on the local currency.
Data from the Central Bank of Nigeria’s (CBN) daily FX report showed the currency traded within a band of N1,349 to N1,362 per dollar, compared to N1,340 to N1,355 in the previous session, indicating heightened volatility in the market.
Nigeria’s external reserves declined by $178 million across three consecutive international payments, settling at $49.83 billion from $50.01 billion, according to CBN figures. The drawdown reflects sustained FX interventions and external obligations, which continue to weigh on liquidity levels.
Meanwhile, global oil prices surged, with Brent crude rising over 5% to about $109 per barrel, driven by escalating geopolitical tensions in the Middle East and supply concerns. U.S. West Texas Intermediate (WTI) also gained, though it remained below $98 per barrel.
The U.S. Federal Reserve’s decision to hold interest rates steady at 3.5%–3.75% further strengthened the dollar, adding pressure on emerging market currencies including the naira.
What’s Being Said
“The pressure on the naira reflects persistent FX demand and declining reserve buffers, which limit the CBN’s ability to sustain aggressive interventions,” said a Lagos-based currency analyst.
“Oil price gains could support reserves if sustained, but geopolitical risks introduce uncertainty into supply flows and revenue stability,” noted an energy market strategist.
What’s Next
- The CBN is expected to continue FX interventions to stabilise the market
- Oil price movements will influence Nigeria’s reserve position in the coming weeks
- Investors are watching for the next Monetary Policy Committee (MPC) signals on currency and liquidity management
