Naira Ranks Second Best-Performing African Currency Against Dollar in 2026
- Nigeria's naira emerges as Africa's second-best-performing currency against the dollar in 2026
- Central Bank defends naira as foreign-exchange reserves hit lowest level since mid-February
- Positive CPI forecast hints at potential interest rate cuts amid global inflation challenges
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigeria’s naira has staged a stunning comeback in 2026, emerging as one of the continent’s strongest currencies and capturing the attention of investors worldwide.
Despite raging geopolitical tensions and wild swings in global markets, the naira now ranks second-best performing African currency against the US dollar year-to-date—trailing only the Zambian kwacha.
Source: Getty Images
A remarkable stand in turbulent times
Head of Market Research at FXTM, Lukman Otunuga, highlighted the naira’s unexpected strength in a fresh statement, according to a report by ThisDay.
“The Naira is the second-best performing African currency against the dollar year-to-date, only surpassed by the Zambian kwacha,” he said. “Its stability through conflict-induced volatility is commendable.”
This resilience stands out sharply. While many emerging-market currencies buckled under pressure from escalating global conflicts, the naira held firm—earning praise for its grit even as bigger economies faltered.
The heavy price of stability
Yet this hard-won strength has come at a steep cost. Nigeria’s foreign-exchange reserves have dropped for 16 straight days through April 8, sliding to $48.94 billion—the lowest level since mid-February.
The Central Bank of Nigeria (CBN) has stepped up aggressively, honouring its March pledge to defend the local currency as geopolitical risks hammered emerging-market assets.
Inflation cooling – A glimmer of hope
Positive news is also emerging on the inflation front. Nigeria’s Consumer Price Index (CPI) is forecast to ease to 13.4% year-on-year in March, down from 15.1% in February.
Analysts say sustained cooling could give the CBN room to cut interest rates—even as other central banks worldwide consider hiking rates to fight conflict-driven inflation.
Oil surges as supply fears return
The commodity markets tell a dramatic parallel story. Brent crude skyrocketed as much as 9% to around $104 per barrel after the US vowed to blockade vessels in the Strait of Hormuz. Otunuga noted, “Oil benchmarks surged… as supply shock fears returned with a vengeance.
Deepening conflict may keep oil prices elevated, with triple digits potentially becoming a new normal amid extreme supply tightness.”
Gold under pressure in risky climate
Gold, often a haven, initially dipped on surging oil prices and inflation worries.
Despite a brief rebound above $4,700, bears remain firmly in control. With expectations of lower rates in 2026 now fading and the dollar staying strong, gold is expected to struggle. Key levels to watch, according to Otunuga: $4,825, $4,700, and $4,600.
Nigeria’s naira has proven it can punch above its weight in 2026, turning heads across Africa and beyond.
While challenges remain, especially around reserves and external pressures, the currency’s performance offers a rare note of optimism in an otherwise stormy global economy.
Source: Getty Images
For ordinary Nigerians and investors alike, this resilience feels like a hard-fought victory worth celebrating.
Naira rallies to strongest level in weeks
Legit.ng earlier reported that the Nigerian according to against the United States dollar in the official foreign exchange market, reaching N1,355.25/$ on Friday, April 10.
Data published by the Central Bank of Nigeria (CBN) showed that Friday’s closing rate, which is its strongest level in recent sessions, represents an improvement from the pre-Easter rate of N1,382.75/$ recorded on Thursday, April 2, 2026.
The foreign exchange markets were open for four days and started the week on Tuesday at a closing rate of N1,389/$, before appreciating to N1,369/$ on Wednesday.
Source: Legit.ng
