Naira Opens March on Stable Note as Strong Reserves, Lower Inflation Support Currency
Naira Opens March on Stable Note as Strong Reserves, Lower Inflation Support Currency
Naira Opens March on Stable Note as Strong Reserves, Lower Inflation Support Currency
The Nigerian naira began the new month on a note of cautious stability against the U.S. dollar on Monday, March 2, 2026, supported by strong foreign reserves, easing inflation, and steady foreign exchange supply.
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Data from the Nigerian Foreign Exchange Market (NFEM) showed the naira opening at ₦1,359.58 per dollar in the official window. By early trading hours, the currency recorded only marginal movement, briefly touching ₦1,360.00 before settling around ₦1,359.99, indicating a stable start to the week.
The performance reflects a mild adjustment following the Central Bank of Nigeria (CBN)’s recent 50-basis-point cut in the Monetary Policy Rate, as the market continues to seek a new equilibrium. Liquidity remained strong, buoyed by increased foreign portfolio inflows and the CBN’s continued implementation of a willing-buyer, willing-seller framework, which has helped prevent sharp intraday volatility.
In the informal market, the naira traded within a narrow band of ₦1,365 to ₦1,375 per dollar across major commercial centres including Lagos, Abuja, and Kano.
The gap between official and parallel market rates remained close to 1 per cent, a significant improvement from the wide disparities recorded in previous years.
Currency dealers noted that although demand typically rises at the start of the week due to import and travel needs, consistent dollar supply through authorised channels has limited speculative activity. The close convergence of rates is seen as evidence that recent transparency measures are discouraging hoarding and arbitrage.
Several macroeconomic fundamentals continue to underpin the naira’s strength. Nigeria’s external reserves rose to $49.51 billion at the end of February, up from $46.11 billion in January, providing the CBN with a strong buffer against market shocks. Inflation also continued its downward trajectory, slowing for the tenth consecutive month to 15.10 per cent in January 2026, boosting investor confidence.
Oil sector stability remains another key support, with crude output holding at about 1.46 million barrels per day and Bonny Light averaging $71.87 per barrel in February. In addition, Nigeria recently recorded its largest trade surplus on record, strengthening the current account position and easing devaluation pressures.
Market analysts project that the naira will trade within the ₦1,355 to ₦1,365 range in the official market this week, as financial institutions adjust to the new interest rate environment and await the next phase of the CBN’s currency stabilisation strategy.
Naira Opens March on Stable Note as Strong Reserves, Lower Inflation Support Currency
