The Nigerian naira maintained a stable trend against the US dollar in the early hours of Friday, March 20, 2026, as the foreign exchange market continues to absorb the effects of improved external reserves and the central bank’s sustained orthodox monetary policy.
official market activity
At the Nigerian Foreign Exchange Market (NFEM), the naira opened the final trading session of the week with a slight appreciation. Data from the FMDQ Securities Exchange indicated the currency traded at an average of N1,352.89 per dollar. This reflects a gradual strengthening from the midweek average of N1,357, signalling a positive performance for the local currency.
Market sentiment has been supported by the recent announcement from the Central Bank of Nigeria that gross external reserves have stabilised above the $50 billion mark, currently standing at about $50.03 billion. Analysts attribute this to increased oil revenues, with Brent crude remaining above $100 per barrel, alongside a notable rise in diaspora remittances.
parallel market overview
The parallel market, also known as the black market, reflected similar stability. In major trading hubs such as Lagos, Kano, and Port Harcourt, Bureau De Change operators quoted the dollar at N1,410 for buying and N1,415 for selling.
The gap between the official and parallel market rates remains relatively narrow at below 5%, an achievement recently highlighted by the CBN Governor, Olayemi Cardoso, as a key indicator of successful exchange rate harmonisation. The reduced volatility has largely curtailed speculative “panic buying” previously seen in the market.
economic drivers and outlook
Several factors are currently supporting the naira as the second quarter of 2026 approaches:
- refining capacity: The Dangote Refinery ramping up to 700,000 barrels per day has significantly lowered the demand for foreign exchange previously used for petroleum imports.
- monetary policy: The CBN’s tight stance, with the Monetary Policy Rate (MPR) at 26.5%, continues to attract foreign portfolio investment despite global inflationary pressures.
- inflation control: Headline inflation has eased, recently recorded at 15.06%, helping to stabilise the naira’s purchasing power.
As the trading week draws to a close, market participants are looking ahead to the next Monetary Policy Committee (MPC) meeting for indications of future policy direction. For now, the combination of elevated oil prices and strong reserves points to a period of relative stability for the Nigerian currency.