Naira Continues Recovery, Gains 0.34% Against US Dollar in Official Market
The Nigerian naira sustained its upward trajectory in the Nigerian Foreign Exchange Market (NFEM) on Thursday, March 12, 2026, appreciating by 0.34% against the United States dollar. According to data released by the Central Bank of Nigeria (CBN), the local currency closed at N1,371.51 per dollar, marking an improvement of N4.68 from the previous day's rate of N1,376.19/$1.
Naira Strengthens Against Pound Sterling and Euro
In addition to its gains against the dollar, the naira demonstrated resilience against other major global currencies. It strengthened against the British pound sterling, rising by N10.67 to N1,834.80/£1 from midweek's N1,845.47/£1. Similarly, against the euro, the naira gained N49.62, closing at N1,581.89/€1 compared to N1,631.51/€1 in the prior trading session.
Mixed Performance in Parallel Market
While the official market saw appreciation, the parallel or black market presented a varied picture. The naira rose by N10 against the US dollar to N1,410/$1, up from N1,420/$1 the day before. At GTBank's foreign exchange desk, it gained N16 to N1,391/$1 from N1,407/$1, indicating some stability across different trading platforms.
Analysts Attribute Recovery to Foreign Inflows and CBN Actions
Financial analysts have linked the easing pressure in the foreign exchange market to significant inflows from foreign investors, exporters, and non-bank corporates. Notably, Nigeria's gross external reserves have surpassed $50 billion, reaching their highest level since 2009, which provides a positive outlook for the naira's stability. Some projections suggest the naira could strengthen to N1,300 per dollar in the first half of 2026, driven by continued policy effectiveness and market confidence.
CBN Resumes Dollar Sales to Manage Appreciation
The Central Bank of Nigeria resumed dollar sales last week after accumulating reserves in previous weeks to manage the naira's appreciation in the NFEM. The apex bank sold $314.2 million, accounting for approximately 25% of total foreign exchange inflows. According to a report by Coronation Merchant Bank's research department, total FX inflows stood at $1.26 billion as of last week.
Foreign portfolio investors (FPIs) were the largest contributors, providing $518.7 million or 41.3% of total inflows. Exporters added $159.1 million (12.7%), non-bank corporates $135.5 million (10.7%), and individuals $110.9 million (8.8%), with the remainder sourced from other channels.
Snapshot of Naira Exchange Rates in Official Market
Here is a detailed overview of the naira's selling rates against various currencies in the official market as of the reporting period:
- CFA: N2.43
- Yuan/Renminbi: N199.67
- Danish Krona: N211.66
- Euro: N1,581.90
- Yen: N8.63
- Riyal: N365.45
- South African Rand: N82.38
- Swiss Franc: N1,752.95
- Pounds Sterling: N1,834.80
- US Dollar: N1,371.51
- WAUA: N1,877.79
- UAE Dirham: N373.36
ABCON Comments on Naira's Appreciation
The Association of Bureaux De Change Operators of Nigeria (ABCON) has commented on the recent rise in the naira's value. In a statement, ABCON president Aminu Gwadabe highlighted that the appreciation reflects the effectiveness of the Central Bank of Nigeria's policies and foreign exchange reforms. This endorsement from industry stakeholders underscores growing confidence in the monetary authorities' strategies to stabilize the currency.
The continued recovery of the naira, supported by robust foreign reserves and strategic interventions, signals a positive trend for Nigeria's economy, potentially enhancing investor sentiment and economic stability in the coming months.
