The naira strengthened to N1,349.5 per US greenback on Tuesday, making it the primary time it traded beneath the N1,350/$ mark since Might 29, 2024.
Knowledge from the official international trade market confirmed the native foreign money improved from N1,354.9 per greenback recorded on Monday.
The most recent appreciation displays sustained positive factors within the official market and comes amid rising exterior reserves and expectations forward of the Central Bank of Nigeria’s upcoming Financial Coverage Committee assembly.
In distinction, the parallel market price remained weaker, highlighting delicate however persistent strain within the unofficial section of the international trade market.
The event underscores the continued efforts to stabilize the naira whereas narrowing the hole between official and road charges.
What the information is saying
The naira closed at N1,349.5 per greenback within the official market on Tuesday, strengthening from N1,354.9 per greenback recorded the day gone by.
- This marks the primary time the foreign money has traded beneath the N1,350 threshold since Might 29, 2024, when it was quoted at N1,329.65 per greenback.
- The parallel market price stood at N1,443.68 per greenback on Tuesday, in comparison with N1,443.40 per greenback on Monday.
The bettering reserve place and sustained positive factors within the official window level to stronger international trade liquidity circumstances out there.
Extra Insights
Analysts attribute the current appreciation of the naira to stronger international trade inflows and improved market confidence.
Dr. Joseph Mbada, an Abuja-based economist, mentioned the appreciation displays improved liquidity within the official international trade market.
- In response to him, “The strengthening of the naira beneath N1,350 per greenback signifies that offer circumstances within the official window have improved considerably. That is largely a operate of higher inflows and tighter financial circumstances, which have helped reasonable speculative demand.”
- Elevated liquidity within the official window has helped ease volatility and assist value stability.
- The rise in exterior reserves has been supported by greater oil export earnings.
- Remittance inflows and portfolio investments have additionally contributed to improved greenback provide.
The narrowing hole between official and parallel market charges indicators comparatively improved market alignment.
Specialists notice that stronger reserves present the CBN with extra buffers to handle volatility and defend the foreign money when needed.
What it’s best to know
The current motion within the trade price comes forward of the Central Bank of Nigeria’s 304th Financial Coverage Committee assembly scheduled for February 23–24, 2026. Policymakers are anticipated to evaluate inflation traits, liquidity circumstances, and developments within the international trade market.
- At its November 2025 assembly, the MPC retained the Financial Coverage Price at 27 per cent.
- In September 2025, the committee lowered the speed by 50 foundation factors from 27.5 per cent to 27 per cent.
The present stance displays a decent financial coverage aimed toward curbing inflation and stabilizing the naira
