By By Elizabeth Ugbo
The Nigerian Naira maintained a steady performance against the US Dollar on Wednesday, February 25, 2026, in the Nigerian Foreign Exchange Market (NFEM). The Central Bank of Nigeria (CBN) actively manages liquidity, ensuring market stability. Analysts expect the currency to remain stable due to robust foreign reserves, favorable inflationary trends, and transparent pricing policies.
Robust Foreign Reserves Support the Naira
Nigeria’s foreign reserves currently exceed $47 billion, giving the CBN ample capacity to intervene.
These reserves help smooth temporary liquidity mismatches and stabilize the Naira exchange rate.
Market experts note that sufficient reserves create investor confidence and support long-term currency stability.
Inflationary Trends Provide a Strong Investment Floor
January 2026 inflation stood at 15.10%, creating an attractive “real rate” for investors.
This high real yield supports the Naira by encouraging foreign and domestic portfolio investment.
The Central Bank’s clear communication ensures that inflation expectations align with market behavior.
Official Market Performance (NFEM)
The Naira opened at 1,351.13 per US Dollar in the official market.
It fluctuated slightly, touching 1,352.02 before retracing to 1,350.88 by 7:30 AM WAT.
The simple average rate hovered around 1,348, signaling a narrow trading corridor and market stability.
Parallel Market Trends Remain Close to Official Rates
The parallel market exchanges the US Dollar between 1,355 and 1,365 per Naira.
The spread is under 1.5%, showing effective harmonization policies by the CBN.
Retail demand drives small-scale transactions, while speculative hoarding remains minimal.
Key Economic Drivers Affecting the Naira
Interest Rates: The Monetary Policy Rate (MPR) stays at 26.50%, attracting foreign investment and encouraging local savings.
Liquidity Management: Authorized dealers report healthy liquidity, preventing sudden swings in the exchange rate.
Global Factors: Oil price fluctuations or US Fed rate changes could influence future Naira trends.
Outlook for the Naira Exchange Rate
Analysts predict the Naira will trade between 1,345 and 1,355 in the official window.
Stable policies, low volatility, and strong reserves provide a reliable foundation for market performance.
