By theG&BJournal
SAT FEB 28 2026-theGBJournal| The naira weakened by 2.1% w/w to N1,369.00 against the US dollar as sustained demand pressure in the foreign exchange market outweighed the positive signal from rising external reserves and improved inflows from FPIs looking to participate in the OMO PMA and the US$200.00 million intervention by the CBN.
In the parallel market, dealers are quoting the dollar at approximately N1,360-N1,380/US$1
In the forwards market, the naira rates depreciated across the 1-month (-1.5% to N1,389.06/USD), 3-month (-1.6% to N1,426.89/USD), 6-month (-1.4% to N1,474.65/USD) and 1-year (-1.3% to N1,568.70/USD) contracts.
Despite improved buffers, dollar appetite from importers, corporates, and portfolio investors kept the local unit on the defensive.
Data from the Central Bank of Nigeria showed a marginal increase in FX reserves during the week, reflecting ongoing inflows and possible official support.
The gross FX reserves increased this week by US$609.76 million w/w to US$49.51 billion (February 25), marking the tenth consecutive week of increase.
However, liquidity conditions in the spot market remained tight, with demand persistently outstripping supply across key segments.
Analysts say the divergence underscores a familiar challenge for the Nigerian naira—strong reserve levels do not automatically translate into immediate exchange rate stability without consistent and broad-based dollar liquidity.
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