By theG&BJournal
SAT FEB 21 2026-theGBJournal| The naira closed the week on a stronger note, rising 1.5% w/w to N1,340.45/US$1 buoyed by a steady climb in Nigeria’s foreign exchange reserves that has injected fresh optimism into the currency market.
Strong offers from FPIs looking to participate in the OMO PMA and Central Bank of Nigeria (CBN) dollar sales to bureau de change (BDCs), supported the gains also and helped tighten the spread between official and parallel market exchange rate.
After days of cautious trading, the local unit firmed up across key segments, reflecting improved liquidity and renewed investor confidence.
Notably, the level of supply was significant, prompting the Central Bank to intervene by buying US$84.20 million from the market.
In the forwards market, the naira rates appreciated across the 1-month (+0.8% to N1,368.37/USD), 3-month (+0.9% to N1,404.58/USD), 6-month (+0.8% to N1,454.08/USD) and 1-year (+1.0% to N1,548.63/USD) contracts.
Meanwhile, data from the Central Bank of Nigeria showed a noticeable uptick in external reserves, signaling stronger buffers to defend the currency and meet external obligations.
The rise in reserves comes amid sustained reforms in the foreign exchange market and increased inflows, factors analysts say are gradually stabilising the naira’s outlook.
The gross FX reserves increased this week by USD691.70 million w/w to US$48.50 billion (February 17), marking the ninth consecutive week of accretion.
Market watchers note that a stronger reserve position not only supports the naira in the short term but also enhances Nigeria’s credibility with foreign investors.
For businesses and households, the currency’s improved performance offers hope of easing import costs and moderating inflationary pressures, reinforcing expectations of greater stability in the weeks ahead.
Looking ahead, analysts at Cordros Research expect foreign investor appetite for Nigeria’s capital market to remain robust, underpinned by a relatively weaker dollar, supportive macroeconomic backdrop, enhanced market efficiency, and elevated naira yields. They also expect the naira to remain firm in the near term.
”These factors should continue to underpin capital inflows and FX liquidity, while rising external reserves provide the CBN with adequate buffers to stabilise the naira during periods of volatility,” Cordros said.
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