Naira Weakens Significantly
The naira has slid against the US dollar, reaching a new low of N1,393.26 per dollar on March 7, 2026. This decline marks a loss of N5.81 in just one day within the official market, highlighting ongoing challenges in Nigeria’s foreign exchange landscape.
Over the past two weeks, the naira has depreciated by a total of N46.94 against the dollar in the official foreign exchange window. In the parallel market, the currency also fell, trading at approximately N1,415 per dollar on the same day.
Recent Trading Trends
During the trading session on March 7, 2026, the naira fluctuated between ₦1,404/$ and ₦1,398/$. This is a stark contrast to its opening value of ₦1,376/$ on March 2, 2026, and its value of ₦1,337/$ on February 17, 2026, indicating a steady decline.
The Central Bank of Nigeria has been actively involved in the foreign exchange market, with net foreign exchange reserves reported at $34.80 billion at the end of 2025. However, the continued weakening of the local currency persists despite these efforts.
Government Response
President Bola Ahmed Tinubu acknowledged the government’s intervention to support the naira through various monetary measures. He confirmed that steps have been taken to stabilize the currency amidst the ongoing volatility.
Analysts attribute the recent slide of the naira largely to foreign exchange liquidity constraints, which have limited the supply of dollars in the market. Despite these challenges, the Central Bank of Nigeria maintains that underlying indicators suggest some improvement in Nigeria’s external position.
The situation remains fluid, and further developments are expected as the Central Bank continues to navigate the complexities of the foreign exchange market. Details remain unconfirmed regarding the long-term strategies that may be implemented to address the naira’s depreciation.