Naira Depreciates Against US Dollar in Official and Parallel Markets
The Nigerian naira experienced a decline against the US dollar on Friday, February 13, 2026, in both the official Nigerian Foreign Exchange Market (NAFEM) and the parallel market. This depreciation occurred amid sustained demand for foreign exchange and the absence of fresh intervention from the Central Bank of Nigeria (CBN).
Official Market Performance
At the official NAFEM window, the naira weakened by N1.76 or 0.13%, closing at N1,355.42 per US dollar, compared to N1,353.66/$1 recorded on Thursday. Market data indicates that the local currency faced renewed pressure due to high demand for foreign exchange, which outpaced supply despite inflows from exporters and other market participants earlier in the week.
Gains Against Other Currencies
Despite the drop against the dollar, the naira posted gains against other major currencies in the same trading session. It appreciated against the Pound Sterling by N5.05, settling at N1,844.59/£1, up from Thursday's closing rate of N1,849.64/£1. Similarly, the currency strengthened against the euro, rising by 75 kobo to close at N1,607.93/€1, compared with N1,608.68/€1 in the previous session.
Parallel Market and Bank Desk Rates
In the parallel market, the naira traded at N1,430/$1, reflecting continued pressure from demand by importers and individuals seeking foreign payments. At the FX desk of Guaranty Trust Bank (GTBank), the naira depreciated by N6 against the dollar, trading at N1,365/$1, relative to N1,359/$1 on Thursday.
Analysts' Insights on Currency Weakness
Financial analysts attribute the naira's depreciation to strong demand exceeding supply in the official window. Additional pressure followed the entry of duly licensed Bureau De Change (BDC) operators into the official foreign exchange market. While this initially heightened demand, industry sources suggest it could support exchange rate stability in the medium term as BDCs clarify operational guidelines with banks.
Aminu Gwadabe, president of the Association of Bureau De Change Operators of Nigeria (ABCON), commented that the new directives allowing BDCs to buy dollars from authorized banks will increase dollar liquidity at the retail end and provide a source of dollars to operators.
Latest Exchange Rate Breakdown
- CFA: N2.44
- Yuan/Renminbi: N196.17
- Danish Krona: N215.18
- Euro: N1,607.93
- Yen: N8.84
- Riyal: N361.42
- South African Rand: N84.55
- Swiss Franc: N1,762.34
- Pounds Sterling: N1,844.59
- US Dollar: N1,355.42
- UAE Dirham: N368.99
Rise in FX Reserves
In related news, Nigeria's gross external reserves rose to $46.012 billion as of January 22, 2026, marking the strongest level in nearly eight years. This represents an increase of about $510 million from the $45.5005 billion recorded on December 31, 2025. The last time reserves reached a similar level was in August 2018, indicating a significant improvement in Nigeria's external balance position.
The naira's performance highlights ongoing challenges in the foreign exchange market, with demand pressures and regulatory changes shaping currency dynamics. Market participants will closely monitor CBN interventions and BDC operations for future stability.
