The Nigerian Naira demonstrated renewed resilience on Tuesday, appreciating to N1,337 per dollar at the official foreign exchange market. This gain follows a steady recovery trend, up from the N1,344 recorded on Monday, marking the currency’s strongest official closing rate in nearly nine months.
The last time the Naira saw a stronger performance was on May 29, 2024, when it settled at N1,329.65.
Market Performance Breakdown
The appreciation was reflected across both primary trading windows, signaling a broader stabilization of the FX market:
- Official Market (CBN): Improved from N1,344 to N1,337/$.
- Parallel Market: Strengthened to N1,382.5/$, up from N1,393.35 the previous day.
Key Drivers: Analysts attribute this shift to improved dollar liquidity, better supply dynamics, and a cooling of speculative activity by traders.
The Global Perspective
The Naira’s recovery is unfolding against a backdrop of shifting global geopolitical and monetary signals:
- Geopolitical Easing: Diplomatic talks between the U.S. and Iran, alongside ongoing negotiations between Ukraine and Russia, have bolstered global risk appetite.
- U.S. Policy: Investors remain cautious, awaiting the Federal Open Market Committee (FOMC) minutes and U.S. GDP data to gauge the likelihood of Federal Reserve interest rate cuts.
- Dollar Index: The U.S. dollar remained relatively flat, allowing emerging market currencies like the Naira some breathing room.
What’s Next: MPC Meeting Ahead
This currency gain comes at a critical time for Nigeria’s monetary leadership. Central Bank Governor Olayemi Cardoso recently reaffirmed Nigeria’s “pivotal role” in advancing Africa’s single currency agenda.
Looking ahead, all eyes are on the 304th Monetary Policy Committee (MPC) meeting scheduled for February 23 and 24, 2026.
Current Stance: The CBN currently maintains a restrictive posture with the Monetary Policy Rate (MPR) at 27%, a strategy designed to curb inflation and provide a floor for the Naira’s value.
