Naira Holds Steady Against Dollar Despite Reserve Pressures as Q1 Ends

The Nigerian Naira maintained relative ility against the US Dollar in the official market as the first quarter of 2026 concluded, even amid emerging pressures on the country’s external reserves.

At the Nigerian Foreign Exce Market, the Naira opened trading on Tuesday, March 31, 2026, at ₦1,385.60 per Dollar. By mid-morning, the local currency firmed slightly to ₦1,383.37, reflecting marginal gains following a period of volatility earlier in the month. Market observers attribute the relative ility to the Central Bank of Nigeria’s refined Electronic Foreign Exce Matching System, which has enhanced transparency and price discovery.

In the parallel market, the Naira mirrored the official segment’s ility, trading between ₦1,405 and ₦1,420 per Dollar in major hubs such as Lagos and Abuja. The narrow spread of ₦22 to ₦35 highlights the CBN’s ongoing success in harmonizing official and informal exce rates. Analysts also note that directives requiring International Money Transfer Operators to channel remittances through Naira settlement accounts have begun to curb speculative activity in the black market, ahead of full implementation in May.

Despite exce rate steadiness, Nigeria’s external reserves declined by $547 million over two weeks, falling from $50.03 billion to $49.48 billion, largely due to sustained market interventions and external debt obligations. Other macroeconomic indicators, however, remain encouraging. Headline inflation eased to 15.06% in February, marking the 11th consecutive month of cooling and the lowest since late 2020. Global oil prices remain supportive, with Bonny Light trading near $103.69 per barrel, helping sustain government revenue.

Policy measures, including the removal of restrictions on international oil companies allowing full repatriation of export proceeds, are expected to improve capital flows and investor confidence.

As Nigeria enters Q2 2026, traders anticipate that the Naira will continue to trade within the ₦1,380 to ₦1,400 corridor, provided inflows from the services and manufacturing sectors remain consistent. The focus will be on sustaining ility despite declining reserves and global market fluctuations.