• Super Admin
• 07 Mar, 2026

Limited forex supply, global tensions, and a stronger U.S. dollar push the naira to its weakest level since late January.... Nigeria's currency extended its losing streak on Friday, slipping to ₦1,398 per dollar, its weakest level since late January, as persistent foreign exchange pressures and global market developments continued to weigh on the local unit. Figures released by the Central Bank of Nigeria showed that the naira traded between ₦1,404/$ and ₦1,398/$ during Friday's session before settling at a simple average of ₦1,394.55/$. The latest decline capped a largely negative week for the currency, which had opened trading on Monday at ₦1,376/$. Market data indicated that the naira weakened to ₦1,390/$ on Tuesday before staging a brief recovery midweek. On Wednesday, the currency recorded its only gain of the week, appreciating modestly to ₦1,382/$. The respite proved short-lived. By Thursday, the naira had resumed its downward movement, closing at ₦1,388/$, before slipping further to ₦1,398/$ at the end of Friday's trading session. The gradual decline reflects a broader weakening trend that has persisted in recent weeks. Since February 17, when the currency traded at ₦1,337/$, the naira has steadily shed value across several trading sessions. Analysts say the latest slide is largely linked to ongoing foreign exchange liquidity constraints, which have continued to limit dollar supply in the market. At the same time, speculative trading activities have added to the pressure on the currency. Despite the recent volatility, the Central Bank of Nigeria insists that underlying indicators point to some improvement in Nigeria's external position. CBN Governor Olayemi Cardoso recently revealed that the country's net foreign exchange reserves rose to $34.80 billion at the end of 2025, while gross reserves climbed further to $50.45 billion as of February 2026. According to the apex bank, stronger oil revenues and rising foreign inflows are expected to support reserve levels and help stabilise the naira over time. External developments have also played a role in the currency's weakness. Rising geopolitical tensions in the Middle East have boosted demand for the U.S. dollar globally, pushing the dollar index to a three-month high earlier in the week. The index surged by nearly 1 percent on Monday, marking the dollar's strongest single-day gain in about seven months, as investors moved funds into safer assets amid heightened uncertainty. The stronger greenback has placed additional pressure on several emerging market currencies, including the naira, as global investors reassess risk in volatile geopolitical conditions. For Nigeria's currency, the combination of domestic forex constraints and shifting global market dynamics continues to shape its direction in the near term. Source: https://www.tv360nigeria.com/naira-slides-to-₦1398-as-dollar-strength-and-fx-pressures-weigh-on-currency/