The Nigerian naira has experienced its second consecutive week of sharp decline, falling to N1,393.26 in the official market and N1,415 in the parallel market following a deliberate dollar “mop-up” intervention by the Central Bank of Nigeria.
The Nigerian naira concluded the first week of March 2026 with a significant retreat against the United States dollar, marking its second straight week of depreciation across both official and parallel markets. Data released by the Central Bank of Nigeria (CBN) on Friday, March 6, showed the local currency slipping further to N1,393.26 per dollar in the official window, a decline from the N1,387.45 recorded the previous day. This trend represents a week-on-week drop of N29.87, extending a two-week slump that has seen the naira lose a total of N46.94 against the greenback at the Nigerian Foreign Exchange Market (NFEM).
The parallel market mirrored this downturn, with the naira dipping by N45 over the last fortnight. Bureau de Change operators in Abuja’s Wuse Zone 4 reported that the currency exchanged at N1,415 per dollar on Friday, down from approximately N1,370 on February 23. Market participants attribute the recent volatility to a strategic shift by the apex bank, which has reportedly been active in the market to stabilize the pace of the currency’s earlier rapid appreciation. Analysts suggest that this intervention is aimed at preventing sharp movements that could disrupt returns for foreign investors and distort local fixed-income securities.
The recent decline follows a confirmed move by the CBN to mop up excess dollar liquidity from the market, a strategy recently acknowledged by President Bola Ahmed Tinubu. This intervention, while intended to manage the currency’s trajectory and curb speculative trading, has temporarily reversed the gains seen in February when the naira firmed by over 4 percent. Despite the current slide, the presidency remains optimistic about the long-term impact of its economic reforms. In a recent remark, the President signaled that the “Budget of Consolidation” for 2026 would focus on maintaining macroeconomic stability while ensuring the exchange rate remains within the projected benchmark of N1,400 per dollar.
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