Naira strengthens to N1,345/$ amid improving FX market stability

Nigeria’s naira continued its upward momentum on Tuesday, March 17, appreciating to N1,345/$ at the official foreign exchange market, improving from N1,355/$ recorded on Monday, according to data published on the Central Bank of Nigeria (CBN) website.

show that Tuesday’s closing rate represents the strongest level for the naira since February 18, 2026, when the currency closed at N1,340/$.

During intraday trading, the naira traded between N1,340/$ and N1,355/$, with the simple average exchange rate standing at N1,344.55/$. The closing rate of N1,345/$ continues the upward trend observed in recent sessions, reflecting improved foreign exchange supply and reduced market volatility compared to previous weeks.

Analysts note that the naira’s appreciation signals growing stability in the official FX market, even as the country adjusts its foreign exchange reserves.

Nigeria’s gross external reserves recorded a slight decline, falling to $49.86 billion from $50.45 billion in February 2026. While the decrease reflects ongoing adjustments in the country’s FX buffers, the reserves remain a critical indicator of Nigeria’s ability to support the naira and meet external obligations.

Global currency markets showed mixed movements on Tuesday as investors reacted to geopolitical tensions in the Middle East, now entering its third week, and awaited major central bank decisions.

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The U.S. Federal Reserve is expected to announce its policy decision on Wednesday, following its January 28, 2026 meeting, where the Federal Open Market Committee (FOMC) voted to keep the federal funds rate steady at 3.5% to 3.75%.

Meanwhile, the European Central Bank (ECB), Bank of England (BoE), and Bank of Japan (BoJ) are also set to announce policy decisions, with markets expecting interest rates to remain largely unchanged. Investors are closely monitoring guidance on inflation trends and global economic outlook.

On the domestic front, the Central Bank of Nigeria reduced its Monetary Policy Rate (MPR) to 26.5% from 27% at its 304th Monetary Policy Committee meeting, a move aimed at supporting liquidity and stimulating economic activity.

Analysts say the combination of improved FX supply and monetary easing has supported the naira’s recent gains.

Market experts suggest that the naira’s appreciation, despite a slight dip in reserves, points to better FX management and increasing confidence among investors.

Reduced volatility in the official market, coupled with steady global conditions, is expected to maintain moderate gains for the naira in the short term.

However, analysts caution that continued monitoring of both external reserves and global market developments is critical, particularly in light of geopolitical tensions and central bank policy decisions that may influence currency flows.