N1,380/$: Naira Trades at New Rate For Two Weeks as Nigeria’s Reserves Drop
- Nigeria’s naira depreciates to N1,380.58 per dollar, reflecting ongoing economic pressures
- External reserves decline to $49.48 billion, limiting the Central Bank's ability to stabilise currency
- New CBN measures aim to enhance FX liquidity and transparency in remittance processes
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigeria’s currency closed the week on a weaker note at the official foreign exchange market, highlighting persistent pressure on the naira despite intermittent daily gains.
Data from the Central Bank of Nigeria shows the naira settled at N1,380.58 per dollar on Friday, representing a weekly depreciation of N21.68 or 1.57 per cent from N1,358.90 recorded the previous week.
Source: Getty Images
Although the naira showed some resilience in daily trading, appreciating by N3.30 from Thursday, March 26, 2026, to Friday, March 27, 2026, the broader trend remained negative.
Over the course of the week, the currency gained modestly from its Monday opening of N1,388.38, but these gains were insufficient to offset the overall decline.
Parallel market gap widens
Pressure on the naira was also evident in the parallel market, where the currency weakened further to N1,415 per dollar on Friday.
This represents a N15 drop compared to N1,400 recorded a week earlier.
Daily, the naira also slipped by N3 from Thursday’s rate of N1,412.
The divergence between official and parallel market rates widened to N35 from N29 the previous week, underscoring ongoing inefficiencies in the FX market and sustained demand for foreign currency outside official channels.
External reserves continue to decline
A key factor driving the naira’s weakness is the continued decline in Nigeria’s external reserves, which serve as a buffer for currency stability.
The reserves fell for the ninth consecutive day to $49.48 billion as of March 26, 2026, marking a drop of $540 million or 1.08 per cent from $50.02 billion recorded on March 11.
The steady depletion of reserves has limited the ability of the Central Bank of Nigeria to effectively defend the naira, contributing to increased volatility in the FX market.
CBN introduces reforms to boost FX liquidity
In response to mounting pressure, the apex bank has rolled out new measures aimed at improving liquidity and enhancing market efficiency. One of the most significant changes is the removal of the cash pooling requirement for International Oil Companies (IOCs).
Previously, authorised dealer banks were required to retain 50 per cent of export proceeds, while the remaining portion could only be repatriated after 90 days.
Under the revised framework, IOCs can now repatriate 100 per cent of their export earnings immediately, provided proper documentation is submitted.
The Central Bank of Nigeria said the policy aligns with current market realities and is expected to boost FX inflows, improve competitiveness, and attract foreign investors.
New rules for remittances and banks
The central bank also introduced fresh guidelines for International Money Transfer Operators (IMTOs) to improve transparency in diaspora remittances.
Under the new directive, all remittance inflows must be processed through designated naira settlement accounts within the banking system.
Operators are required to price transactions using real-time rates from Bloomberg BMatch. At the same time, authorised dealer banks are now permitted to transfer funds across banks and licensed Bureau De Change operators to improve liquidity distribution.
These new rules, set to take effect on May 1, 2026, also reinforce strict compliance with anti-money-laundering and counterterrorism. At the same time, financing regulations.
Source: Getty Images
Outlook: Policy moves vs market realities
The latest developments highlight the delicate balance between policy interventions and market forces in Nigeria’s FX landscape.
While the Central Bank of Nigeria continues to deploy regulatory measures to stabilise the naira, the persistent decline in reserves and widening parallel market gap suggest that challenges remain.
Analysts believe sustained FX inflows, improved investor confidence, and disciplined market operations will be critical in determining whether the naira can regain stability in the coming weeks.
Naira weakens against the US dollar at official FX market
Legit.ng earlier reported that the naira fell against the US dollar in the Nigerian Foreign Exchange Market (NAFEM) on Wednesday, March 25, dropping N4.07 or 0.29% to N1,386.70/$1 from Tuesday’s N1,382.63/$1.
The decline was driven by forex demand pressures amid limited supply from the Central Bank of Nigeria (CBN) and other sources, with the central bank recently not conducting any FX sales to eligible financial institutions, where Bureaux de Change (BDC) operators can access $150,000 weekly.
In the official market, the naira also depreciated against major currencies:
Source: Legit.ng
