Early on Friday, March 20, 2026, the Nigerian Naira remained steady in relation to the US dollar as the foreign currency market continued to process the effects of the nation’s reinforced external buffers and the central bank’s steadfast adherence to orthodox monetary policy.
Official Market Activity
The Naira began the week’s last trading session on the Nigerian Foreign Exchange Market (NFEM) with a little increase in value. The currency was trading at an average of N1,352.89 per dollar, according to real-time statistics from the FMDQ Securities Exchange. This indicates a favorable week for the local currency as it continues to gradually increase from the midweek average of N1,357.
The Central Bank of Nigeria’s (CBN) recent declaration that gross foreign reserves had steadied over the $50 billion barrier, now standing at around $50.03 billion, has encouraged the market. Financial analysts attribute this to a notable increase in diaspora remittances and higher oil receipts, with Brent crude remaining steadily over $100 per barrel.
Overview of the Parallel MarketThe stability observed in the official window has been replicated in the illegal market, often known as the parallel market. Bureau De Change operators offered the dollar at N1,410 for purchases and N1,415 for sales in major currency centers including Lagos, Kano, and Port Harcourt.
Olayemi Cardoso, the governor of the CBN, recently emphasized that a crucial sign of effective exchange rate unification is the fact that the difference between the official and parallel rates is still relatively narrow at less than 5%. The speculative “panic buying” that defined the market in prior years has mostly been deterred by the decreased volatility.
Economic Factors and ProspectsAs we approach the second quarter of 2026, the Naira is currently benefiting from a number of factors:
Refining Capacity: The Dangote Refinery’s move to an output of 700,000 barrels per day has drastically decreased the amount of foreign exchange that was previously needed to import petroleum products.
Monetary Policy: Despite international inflationary pressures, the CBN’s choice to maintain a restrictive monetary policy—the Monetary Policy Rate (MPR) is now at 26.5%—continues to draw in foreign portfolio investment.
Inflation Control: The Naira’s buying power has stabilized as a result of headline inflation’s recent decline to 15.06%.
Market players are anticipating the upcoming Monetary Policy Committee (MPC) briefing as trading week draws to a close in order to get clues about potential future intervention tactics. For the time being, a period of relative quiet for the Nigerian currency is suggested by the combination of high oil prices and strong reserves.
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