Naira Continues Downward Slide Against Major Currencies
The Nigerian naira has sustained its decline against the United States dollar across both official and parallel foreign exchange markets, according to recent data from financial institutions. This persistent depreciation comes despite intervention efforts by the Central Bank of Nigeria to stabilize the local currency.
Official Market Performance Shows Consistent Weakness
At the Nigerian Foreign Exchange Market (NAFEM), the naira depreciated by N5.82, representing a 0.42% decline, to close at N1,393.26 per US dollar on Friday, March 6. This marked a deterioration from the previous day's rate of N1,387.45 per dollar, continuing a troubling trend for the national currency.
The weakness extended beyond the dollar to other major global currencies. Against the British pound sterling, the naira fell by N7.61 to settle at N1,859.99 per pound, down from Thursday's N1,852.38. Similarly, the currency declined by N1.58 against the euro, closing at N1,611.49 per euro compared to the previous N1,609.86.
Commercial Bank and Parallel Market Rates Confirm Trend
GTBank's foreign exchange desk reported even steeper declines, with the naira losing N12 during the trading session to reach N1,410 per dollar, compared to the previous N1,398. The parallel market mirrored this downward movement, with the domestic currency shedding N10 against the greenback.
Abdullahi, a forex trader operating in the parallel market, provided specific rates to journalists: "The dollar buying rate is N1,410, while the selling rate is N1,430. Previously, the buying rate was N1,393. The euro sells at N1,633, and we buy at N1,600. The British pound sterling is selling at N1,880, with a buying rate of N1,850."
Central Bank Intervention Fails to Stem Decline
The continued depreciation occurred despite the Central Bank of Nigeria's injection of $300 million in foreign exchange intervention sales to commercial banks. This substantial intervention highlights how rising demand for foreign payments continues to outpace available supply in the market.
Financial analysts observing the situation note that while the naira is approaching critical thresholds that could trigger broader economic concerns, widespread panic has not yet materialized in the markets. The currency's decline reflects both domestic economic factors and international market dynamics.
International Factors Exerting Pressure
Globally, the US dollar maintained broad strength and recorded its most significant weekly gain in over a year. This dollar strength has been driven by escalating conflict in the Middle East, which has increased demand for safe-haven assets and placed additional downward pressure on emerging market currencies like the naira.
Other Currency Exchange Rates
The naira's performance against other global currencies showed varied results:
- CFA – N2.46
- Yuan/Renminbi – N201.72
- Danish Krona – N215.65
- Euro – N1,611.44
- Yen – N8.82
- Riyal – N371.20
- South African Rand – N83.49
- Swiss Franc – N1,780.97
- Pounds Sterling – N1,859.99
- US Dollar – N1,393.26
- UAE Dirham – N379.28
Foreign Exchange Reserves Show Positive Development
In a potentially encouraging development, Nigeria's foreign exchange reserves have surged to $48.5 billion, reaching their highest level in nearly 13 years. This milestone signals renewed strength in the country's external financial position and could provide a foundation for future currency stabilization efforts.
Latest figures from the Central Bank of Nigeria indicate that reserves reached $48.5 billion on Tuesday, February 17, 2026, representing the strongest level recorded since May 14, 2013, when they stood at approximately $48.51 billion. From $45.56 billion recorded on January 1, reserves have increased by $2.94 billion so far this year, marking a 6.45% gain.
Market observers will be watching closely to see if these growing reserves can eventually translate into more sustained support for the naira against persistent depreciation pressures from both domestic demand and international market forces.
