The Nigerian naira appreciated to N1,337 per dollar at the official foreign exchange market on Tuesday, strengthening from N1,344 recorded a day earlier, according to data from the Central Bank of Nigeria (CBN).
The latest closing rate represents the currency’s strongest performance since May 29, 2024, when it settled at N1,329.65 per dollar, signaling a gradual recovery trend in the official market.
The local currency also gained in the parallel market, where it traded at N1,382.5 per dollar compared with N1,393.35 the previous day, reflecting improved supply conditions and renewed short-term stability in the foreign exchange market.
Analysts attribute the appreciation to improved dollar liquidity, gains in the parallel market, and shifting global geopolitical and monetary policy signals that are influencing investor sentiment toward emerging market currencies.
Global developments also supported the naira’s performance. Diplomatic engagements between the United States and Iran, alongside ongoing negotiations involving Ukraine and Russia, have eased geopolitical tensions and improved global risk appetite. At the same time, the U.S. dollar index remained broadly stable as investors await signals from the Federal Reserve on potential interest rate cuts and upcoming economic data.
These international factors typically shape capital flows into emerging markets such as Nigeria, affecting exchange rate movements.
Meanwhile, the CBN is expected to hold its 304th Monetary Policy Committee (MPC) meeting on February 23 and 24, 2026. At its previous meeting in November 2025, the apex bank retained the Monetary Policy Rate at 27 percent to maintain a tight stance aimed at curbing inflation and stabilising the foreign exchange market.
CBN Governor Olayemi Cardoso also recently stated that Nigeria is playing a key role in advancing Africa’s single currency initiative, underscoring broader monetary policy objectives.
The recent gains suggest improving short-term confidence in the naira, though analysts say sustained stability will depend on continued liquidity support, policy consistency, and favourable global conditions.
