The Nigerian naira closed the first quarter of 2026 on a relatively stable note against the US dollar in the official market, even as pressure mounted on the country’s external reserves.
At the Nigerian Foreign Exchange Market, the currency opened trading on Tuesday, March 31, at ₦1,385.60 per dollar and strengthened slightly to ₦1,383.37 by mid-morning. The modest gain reflects a period of relative calm after earlier volatility within the month.
This stability has been supported in part by the Central Bank of Nigeria’s upgraded electronic trading system, which has improved transparency in price discovery. Still, traders remain cautious as demand for foreign exchange rises toward the end of the quarter and capital flows continue to fluctuate.
In the parallel market, the naira has also held steady, trading within a narrow band. Across major cities like Lagos and Abuja, the dollar is being sold for between ₦1,405 and ₦1,420. The gap between the official and unofficial rates remains relatively tight, hovering between ₦22 and ₦35, suggesting some progress in efforts to unify exchange rates.
Recent policy signals are also shaping market sentiment. A directive requiring International Money Transfer Operators to route remittances through naira settlement accounts—set to take full effect in May—has already begun to reduce speculative activity in the parallel market.
However, beneath the surface stability, pressure on Nigeria’s foreign reserves is building. Over the past two weeks, reserves dropped by about $547 million, falling from $50.03 billion to $49.48 billion by the end of March. This decline is largely linked to ongoing market interventions and external debt repayments.
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Dollar to Naira exchange rate today, March 30, 2026
Despite this, some key economic indicators remain encouraging. Inflation has continued its downward trend, easing to 15.06 percent in February—the lowest level since late 2020. Meanwhile, global oil prices remain strong, with Bonny Light crude trading above $100 per barrel, helping to support government revenue even as production stays below OPEC targets.
In addition, recent policy adjustments allowing international oil companies to fully repatriate export proceeds are expected to improve investor confidence and boost capital inflows over time.
Looking ahead, analysts believe the naira may continue to trade within the ₦1,380 to ₦1,400 range in the near term, provided foreign exchange inflows remain steady and external pressures do not intensify further.
