The Nigerian Naira held steady against the US Dollar on Thursday, March 19, 2026, as the foreign exchange market responded to rising global oil prices and a strong buildup in the country’s external reserves.
At the Nigerian Foreign Exchange Market (NFEM), the currency showed early resilience during morning trading, settling at an average of ₦1,357.11 to the dollar—only a slight movement from Wednesday’s close. Trading activity remained firm, supported by recent interventions from the Central Bank of Nigeria (CBN).
The relative stability at the official window follows a sharp rise in Nigeria’s gross external reserves, which recently climbed to a 13-year high of $50.03 billion. CBN Governor Olayemi Cardoso noted that the increase provides sufficient “firepower” to manage volatility, even as geopolitical tensions in the Middle East push Brent Crude prices above $100 per barrel.
In the parallel market, the naira also remained firm. Bureau De Change operators across key locations—including Lagos (Ikeja and Lagos Island) and Abuja (Wuse Zone 4)—quoted the dollar at ₦1,410 for buying and ₦1,415 for selling.
The gap between official and parallel market rates continues to draw attention. Although it has narrowed significantly since reforms introduced in mid-2025, a difference of about ₦53 to ₦58 persists. Analysts link this to sustained demand from small businesses and individuals covering international school fees and travel expenses.
Despite the current stability, the CBN has urged caution, particularly regarding the risk of “imported inflation.” The bank noted that while higher oil prices boost foreign exchange earnings, they could also increase the cost of energy and transportation—putting pressure on inflation, which recently eased to 15.06%.
Market analysts say the naira is now in a “consolidation phase.” With the Dangote Refinery ramping up operations to around 700,000 barrels per day, demand for foreign exchange to import fuel is expected to decline, potentially strengthening the currency in the months ahead.
