By theG&BJournal
SAT MAR 07 2026-theGBJournal| The Nigerian naira weakened by 1.7% to N1,392.63/USD week-on-week against the US dollar, extending recent volatility in the foreign exchange market despite a modest improvement in the country’s external buffers.
In the forwards market, the naira rates depreciated across the 1-month (-1.8% to N1,413.80/USD), 3-month (-2.0% to N1,455.34/USD), 6-month (-1.8% to N1,501.648/USD) and 1-year (-1.9% to N1,599.08/USD) contracts.
The currency’s depreciation comes amid sustained demand pressures in the FX market, as importers and investors continue to seek dollars to meet trade and portfolio obligations.
Market participants expect the Central Bank of Nigeria to maintain its intervention strategy to stabilize the currency, even as authorities push broader reforms aimed at improving FX supply.
Meanwhile, the latest data showed that Nigeria’s gross foreign exchange reserves increased by $236.21 million to USD49.93 billion (March 5) during the week, marking the eleventh consecutive week of increase, reflecting inflows that provided some support to the Central Bank’s liquidity position.
Analysts note that while the rise in reserves signals improved inflows, it has yet to fully offset the structural demand for foreign currency across the economy.
The gradual build-up in reserves is also viewed as a positive signal for Nigeria’s external balance, potentially strengthening confidence among foreign investors.
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