Naira Strengthens Below N1,350/$ for First Time Since May 2024 – The Business Bureau
By Endurance Samuel Enemona
The naira strengthened to N1,349.5 per US dollar on Tuesday, marking the first time it has traded below the N1,350/$ threshold since May 29, 2024.
Data from the official foreign exchange market shows the local currency appreciated from N1,354.9 per dollar recorded on Monday.
The latest gain is one of the major highlights in Nigeria News Today, reflecting sustained momentum in the official window amid rising external reserves and expectations ahead of the Central Bank of Nigeria’s upcoming Monetary Policy Committee (MPC) meeting.
In contrast, the parallel market rate remained weaker, underscoring mild but persistent pressure in the unofficial segment of the forex market.
The development signals ongoing efforts by monetary authorities to stabilise the naira and narrow the gap between official and street exchange rates.
Official Market Data Shows Stronger Naira
The naira closed at N1,349.5 per dollar in the official market on Tuesday, strengthening from N1,354.9 per dollar the previous day.
This represents the first time the currency has traded below the N1,350 mark since May 29, 2024, when it was quoted at N1,329.65 per dollar.
Meanwhile, the parallel market rate stood at N1,443.68 per dollar on Tuesday, slightly weaker than N1,443.40 per dollar recorded on Monday.
The improving reserve position and sustained gains in the official window point to stronger foreign exchange liquidity conditions.
Analysts Cite Improved Liquidity, Stronger Inflows
Market analysts attribute the recent appreciation to stronger foreign exchange inflows and improved investor confidence.
Dr. Joseph Mbada, an Abuja-based economist, noted that improved liquidity in the official foreign exchange market has played a key role.
“The strengthening of the naira below N1,350 per dollar indicates that supply conditions in the official window have improved significantly. This is largely a function of better inflows and tighter monetary conditions, which have helped moderate speculative demand,” he said.
Increased liquidity in the official window has helped ease volatility and support price stability.
Higher oil export earnings have boosted external reserves, while remittance inflows and portfolio investments have contributed to improved dollar supply.
The narrowing gap between official and parallel market rates also signals improved market alignment compared to previous months.
Stronger reserves provide the Central Bank of Nigeria with additional buffers to manage volatility and defend the currency when necessary.
Attention Turns to Upcoming MPC Meeting
The recent exchange rate movement comes ahead of the Central Bank of Nigeria’s 304th Monetary Policy Committee meeting scheduled for February 23–24, 2026.
Policymakers are expected to review inflation trends, liquidity conditions, and developments in the foreign exchange market.
At its November 2025 meeting, the MPC retained the Monetary Policy Rate (MPR) at 27 percent.
In September 2025, the committee reduced the rate by 50 basis points from 27.5 percent to 27 percent.
The current policy stance reflects a tight monetary approach aimed at curbing inflation and stabilising the naira.
The Business Bureau will continue to monitor currency movements and policy decisions as part of its coverage of financial markets in Nigeria News Today.
