The Nigerian naira fell against the US dollar on Wednesday amid renewed global inflation concerns and heightened currency market volatility, according to exchange data released on March 26, 2026.
Data from the Central Bank of Nigeria (CBN) showed the naira depreciating to ₦1,391/$1, from ₦1,383.5/$1 recorded on Tuesday, reflecting ongoing pressure on Nigeria’s foreign exchange market. NFEM interbank turnover also declined sharply to $55.7 million from $83.4 million, indicating weaker trading activity.
Analysts linked the slide in the naira to broader moves in global currency markets, where the US dollar gained strength against major currencies. The dollar index climbed by 0.44% to 99.62, while the euro and British pound both weakened against the greenback.
The dollar’s rise, market observers say, is being driven by inflation expectations and risk sentiment, which have influenced not only the naira but other emerging market currencies.
External Reserves Dip Slightly
Nigeria’s external reserves showed a marginal decline to $49.57 billion on March 24 from $49.6 billion the previous day, underscoring continuing challenges in defending the naira in the foreign exchange market.
Market Sentiment and Global Forces
The stronger dollar trend comes as investors reassess global inflation trends and geopolitical developments, which have affected risk sentiment across markets. The movements have also coincided with volatility in global oil markets and broader currency shifts.
Economists say that Nigeria’s currency remains sensitive to shifts in global capital flows and external pressures, including fluctuations in oil prices and tightening monetary conditions in advanced economies — factors that could continue to shape exchange rate dynamics.
