The Nigerian Naira recorded a blend of stability and slight fluctuations against the United States Dollar during early trading on March 26, 2026, reflecting a balance between improved liquidity from foreign portfolio inflows and continued pressure from declining external reserves.
Official Market Performance (NFEM)
At the Nigerian Foreign Exchange Market (NFEM), the Naira opened at ₦1,385.46 per Dollar and appreciated slightly to ₦1,384.39 as of 10:00 AM. This follows a volatile start to the week, during which the currency weakened on Monday before recovering some value on Tuesday and Wednesday.
The relative calm in today’s session is supported by a surge in foreign exchange inflows. Data from FMDQ shows that FX inflows rose by 45 percent month-on-month to about $4.4 billion in February, with the trend extending into late March. Analysts attribute this to attractive high-yield investment opportunities drawing offshore “carry trade” investors, thereby boosting liquidity in the official market.
Parallel Market Trends
In the parallel market, also known as the black market, the Naira remained steady against the Dollar. Traders in key centres such as Lagos (Broad Street) and Abuja (Wuse Zone 4) quoted the Dollar at around ₦1,415 for selling and ₦1,405 for buying.
The gap between official and parallel market rates is currently about ₦31. Although slightly wider than the ₦27 recorded earlier in the week, it remains significantly narrower than the triple-digit spreads seen in previous years, aligning with the Central Bank of Nigeria’s (CBN) unification efforts.
Key Drivers and Economic Context
Several factors continue to influence exchange rate movements as the first quarter of 2026 nears its end:
- Remittance Reforms: The CBN has introduced a directive requiring International Money Transfer Operators (IMTOs) to channel diaspora remittances through designated naira settlement accounts, aimed at improving transparency in FX flows.
- Reserve Levels: Nigeria’s external reserves have declined for six consecutive sessions to approximately $49.60 billion, largely due to sustained outflows linked to geopolitical tensions in the Middle East.
- Monetary Policy: The apex bank maintains a tight monetary stance, with headline inflation easing to 15.1% in early 2026, as it targets a medium-term range of 6% to 9%.
Outlook
Market observers expect the Naira to trade within the ₦1,380 to ₦1,420 range for the rest of the week. Despite the decline in external reserves, improvements in underlying assets, including increased gold holdings valued at $3.5 billion, point to a more resilient financial outlook than headline figures may suggest.