Nigeria’s currency posted modest gains across key foreign exchange windows, reflecting a cautious but steady adjustment in market dynamics, even as the country’s external buffers edged lower.
At the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira appreciated to N1,345/$1 on March 17, 2026, from N1,355/$1 recorded a day earlier.
The 0.74% strengthening signals a slight easing in demand pressures within the official window, where the Central Bank of Nigeria continues to play a stabilising role.
In the remittance-driven IMTO segment, the currency also recorded gains against major currencies. The naira strengthened to N1,400/$1 on March 18 from N1,405/$1 previously, while it firmed marginally against the British pound to N1,871/£1. Against the Canadian dollar, the naira appreciated to N1,018/C$1 from N1,027/C$1.
However, performance against the euro diverged slightly, with the naira weakening marginally to N1,591/€1, compared to N1,590/€1 in the prior session, suggesting uneven demand patterns across currency corridors.
Despite the currency’s modest gains, Nigeria’s external reserves declined to $49.865 billion as of March 16, 2026, down from $49.974 billion recorded on March 13. The 0.29% drop underscores persistent pressures on the country’s foreign exchange buffers, likely driven by ongoing interventions and external obligations.
This may also be attributed to the ongoing tensions in the Middle East and its impact on the global oil market.
