Naira Extends Losing Streak Against Major Global Currencies
The Nigerian naira continued its downward trajectory, recording losses against the United States dollar, British pound sterling, and euro across both official and parallel foreign exchange markets. This persistent decline comes amid strategic interventions by the Central Bank of Nigeria aimed at managing currency volatility.
Official Market Performance Shows Consistent Weakness
In the Nigerian Foreign Exchange Market (NAFEM) on Wednesday, February 25, 2026, the naira depreciated by 74 kobo, representing a 0.05% decline, to close at N1,356.11 per US dollar compared to N1,355.37 per dollar the previous day. The currency demonstrated similar weakness against other major currencies, falling by N6.70 against the pound sterling to trade at N1,834.96 per pound, down from N1,828.26 per pound. Against the euro, the naira lost N4.94 to settle at N1,598.59 per euro, compared with N1,596.36 per euro in the preceding session.
At the GTBank foreign exchange desk, the naira experienced a more pronounced decline against the dollar, falling by N6 to close at N1,367 per dollar compared to N1,361 per dollar just a day earlier. In the parallel market, however, the currency remained relatively stable, trading flat at N1,365 per dollar.
Central Bank Interventions Influence Currency Movements
The naira's continued depreciation has been attributed to the Central Bank of Nigeria's recent decision to purchase approximately $189.80 million from the market. This strategic move was designed to manage excess dollar supply and provide support for the national currency during a period of heightened volatility.
This intervention follows closely on the heels of a significant monetary policy adjustment by the Central Bank's Monetary Policy Committee (MPC). On Tuesday, the committee implemented a 50-basis-point reduction in the benchmark interest rate, lowering it to 26.50% from 27%. This decision came after inflation showed signs of easing in January 2026, with analysts suggesting the rate cut was intended to maintain stability in the foreign exchange market and protect Foreign Portfolio Investor (FPI) inflows that have bolstered dollar supply in recent months.
Market Participants Report Current Exchange Rates
Abudullahi, a Bureau de Change (BDC) trader, provided current market rates, stating: "The dollar buying rate is N1,367, while the selling rate is N1,390. The British pound sterling sells at N1,885, with a buying rate of N1,840. The euro sells at N1,650, and we buy at N1,605."
Despite the Central Bank's announcement of a $150,000 weekly foreign exchange window for BDC operators, market participants report they have yet to access this facility. This situation persists even as the naira's recent gains had narrowed the gap between official and parallel market exchange rates. Operators note that while commercial banks appear supportive of the policy, many are still developing internal processes to align with the Central Bank's directive.
Analyst Perspective on Monetary Policy Direction
Kayode Akindele, CEO of Coronation Capital and Head of Coronation Research, commented on the Central Bank's interest rate decision via email: "The 50bps move provides a clear directional signal while keeping overall monetary conditions restrictive, indicating the start of a shallow, data-dependent easing cycle rather than a radical shift to accommodative policy."
Official Central Bank Selling Rates for February 25, 2026
- CFA: N2.43
- Yuan/Renminbi: N197.41
- Danish Krona: N213.92
- Euro: N1,598.59
- Yen: N8.66
- Riyal: N361.51
- South African Rand: N85.56
- Swiss Franc: N1,750.95
- Pounds Sterling: N1,834.96
- US Dollar: N1,356.11
The naira's performance continues to be closely monitored by investors, businesses, and policymakers as Nigeria navigates complex economic challenges and implements measures to stabilize its currency in global markets.
