The Nigerian Naira surged to N1,341.99 per dollar, marking its strongest performance since February’s trading session and signaling renewed confidence in the domestic currency amid sustained monetary policy adjustments.
The exchange rate movement reflects the currency’s response to the Central Bank of Nigeria’s proactive liquidity management and inflation moderation across consecutive months.
Trading in the official window recorded the Naira at competitive levels following the latest Monetary Policy Rate adjustment, with market analysts attributing the strengthening to a combination of controlled dollar supply and disciplined intervention by the apex bank.
The 50-basis-point cut in the MPR has not weakened the Naira as earlier anticipated; instead, it has provided breathing room for investors to reassess positioning in Nigerian assets, triggering foreign exchange inflows.
Data tracking exchange rate movement through February 2026 shows the Naira touched N1,333.28 on February 21, marking the currency’s strongest level during that period.
The current movement back to the N1,341.99 range demonstrates a holding pattern as market participants await further fiscal signals regarding structural reforms in energy and agricultural sectors.
Market liquidity remains robust, with the Central Bank sustaining its dollar injection schedules for essential imports and critical foreign exchange demands.
The Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate has stabilized near 1,349 during the current week, reflecting reduced volatility and improved transparency across official trading channels.
Parallel market rates continue to track between 1,355 and 1,365 per dollar, maintaining traditional spreads.Analysts point to two primary drivers of the recent Naira strength: sustained disinflation and positive economic expansion expectations. Headline inflation eased to 15.10% in January, representing the tenth consecutive month of price moderation.
Concurrently, projected GDP growth of 4.68% for 2026 has bolstered investor sentiment, encouraging capital inflows and supporting long-term currency stabilization.
Market expectations project the Naira will maintain its range between 1,345 and 1,355 through the coming trading week, contingent on fiscal policy announcements and external capital flows.
Economists stress that currency stability without corresponding fiscal discipline risks inflation reacceleration and undermines the structural gains supporting the current exchange rate performance.
The Central Bank’s foreign exchange reserves remain a critical stabilizing factor, enabling consistent dollar supply management and anchoring currency expectations across both official and parallel market segments. Sustained disinflation, economic growth recovery, and regulatory discipline in monetary operations form the structural foundation supporting the Naira’s recent performance trajectory.
Source : Nairametrics
