The Nigerian Naira recorded a modest rebound at the start of mid-week trading, trimming some of the losses from the previous session as liquidity conditions in the Nigerian Foreign Exchange Market (NFEM) began to improve.
Official Market Performance (NFEM)
At the official window, the Naira displayed signs of strengthening during early trading on Wednesday, March 25, 2026. The exchange rate opened at about ₦1,375.26 and edged slightly to ₦1,375.61 by mid-morning. This follows a volatile Tuesday session when the currency briefly hit the ₦1,390 level before easing.
Market participants attribute the relative stability to increased autonomous dollar inflows, as exporters offload their holdings to meet end-of-month domestic obligations. The Central Bank of Nigeria (CBN) has also sustained active oversight through the Electronic Foreign Exchange Matching System (EFEMS), ensuring transparency in bid processes.
Parallel Market Trends
The parallel market reflected the calm observed in the official window. In Lagos and Abuja, the Dollar is currently trading between ₦1,420 and ₦1,435. Although still above the official rate, the premium has remained stable, indicating that speculative pressure has not intensified despite earlier demand surges.
Bureau De Change (BDC) operators note that while demand for travel and personal remittances remains steady, improved supply—driven by the integration of BDCs into the CBN’s distribution framework—has helped prevent sharp and uncontrolled depreciation.
Economic Factors and Liquidity
Several factors are influencing the Naira’s performance:
- Month-End Demand: Corporate demand for the Dollar typically rises towards month-end as businesses settle international obligations, though this is currently balanced by improved liquidity.
- External Reserves: Nigeria’s foreign reserves, estimated at just under $50 billion, continue to support the currency and provide room for intervention if volatility increases.
- Crude Oil Revenue: Stable production levels and global oil prices above $100 per barrel have ensured a steady inflow of foreign exchange, boosting market confidence.
Market Outlook
Traders anticipate the Naira will trade within the ₦1,370 to ₦1,390 range for the rest of the week. Analysts add that the gradual convergence of exchange rates in recent times has improved predictability for foreign investors, who are closely monitoring developments such as the banking recapitalisation exercise for long-term economic signals.