Naira Trades Below N1,350/$ for First Time Since May 2024

SAMUEL MOBOLAJI

The naira appreciated in the official foreign exchange market on Tuesday, closing at N1,349.5 per US dollar, its strongest level since May 29, 2024, when it last traded below the N1,350 mark.

Data from the official window showed the local currency improved from N1,354.9 per dollar recorded on Monday, reflecting sustained gains amid rising external reserves and market optimism ahead of the Central Bank of Nigeria’s Monetary Policy Committee (MPC) meeting scheduled for February 23–24, 2026.

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In contrast, the parallel market rate remained weaker at N1,443.68 per dollar, compared to N1,443.40 per dollar on Monday, underscoring mild but persistent pressure in the unofficial segment of the market.

Analysts attribute the naira’s appreciation to stronger foreign exchange inflows, improved liquidity conditions, and tighter monetary policies.

Abuja-based economist Dr Joseph Mbada noted that the strengthening of the naira below N1,350 per dollar indicates better supply conditions in the official window, supported by higher oil export earnings, remittance inflows, and portfolio investments.

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The rise in external reserves has provided the CBN with additional buffers to manage volatility and defend the currency when necessary. The narrowing gap between official and parallel market rates signals relatively improved market alignment.

At its last meeting in November 2025, the MPC retained the Monetary Policy Rate at 27 per cent, following a 50 basis point reduction in September. The current stance reflects a tight monetary policy aimed at curbing inflation and stabilising the naira.

The latest movement in the exchange rate sets the stage for critical discussions at the upcoming MPC meeting, where policymakers are expected to assess inflation trends, liquidity conditions, and foreign exchange market developments.