Naira Reverses Gains, Crashes Against Dollar, Pound, Euro as CBN Slows Appreciation
The Nigerian naira experienced a significant reversal of its recent gains on Monday, weakening further against key global currencies including the US dollar, pound sterling, and euro. Data released by the Central Bank of Nigeria (CBN) indicates a notable depreciation in the official market, signaling a shift in the currency's trajectory after periods of appreciation.
Official Market Performance
In the Nigerian Foreign Exchange Market (NAFEM), the naira fell by N2.92 or 0.22% to close at N1,349.24 per US dollar, down from N1,346.32 per dollar recorded the previous Friday. This decline marks a reversal from the strengthening trend observed in recent weeks, as the CBN takes measures to moderate the currency's appreciation.
Similarly, the naira depreciated against the pound sterling, losing N6.62 to settle at N1,821.87 per pound, compared to N1,815.25 per pound in the preceding session. Against the euro, it fell by N6.80 to close at N1,591.42 per euro, down from N1,584.62 per euro on Monday.
Parallel and Bank Market Trends
The weakening trend extended beyond the official market. At the GTBank forex desk, the naira weakened by N1 against the dollar, quoting N1,357 per dollar versus the previous session's N1,356 per dollar. In the black market, the naira lost over N10 against the dollar, with forex dealers reporting increased demand.
Abdulahhi, a forex dealer, commented on the situation, stating, "I am currently selling dollars at N1,375 per dollar and buying at N1,355 per dollar. The pound is trading at N1,845 to sell and N1,805 to buy, while the euro is also moving steadily in the market. It seems this week the dollar will return to over N1,400. I have been getting a lot of requests."
CBN Intervention and Market Dynamics
The Central Bank of Nigeria intervened by mopping up approximately $190 million from the market to reduce excess dollar liquidity and ease pressure on the naira. This move, the first of its kind in a while, aims to prevent excessive dollar accumulation that could harm the economy. According to a TrustBanc Financial Group Limited report, the CBN bought $189.80 million last week, contributing to the moderation of currency gains.
Despite the recent depreciation, the naira had shown strength in the prior week, gaining N9.09 week-on-week at the official window to close at N1,346.32 per dollar, while the parallel market strengthened by N60 to N1,340 per dollar. The gap between both markets narrowed significantly to 0.47% from 3.29%, indicating closer alignment in exchange rates.
Snapshot of Latest Exchange Rates
Based on CBN data, here is a breakdown of the naira's performance against selected foreign currencies in the NAFEX market (selling rates):
- CFA: N2.41
- Yuan/Renminbi: N195.28
- Danish Krona: N212.97
- Euro: N1,591.42
- Yen: N8.72
- Riyal: N359.63
- South African Rand: N84.33
- Swiss Franc: N1,740.05
- Pound Sterling: N1,821.87
- US Dollar: N1,349.24
- UAE Dirham: N367.32
Foreign Exchange Reserves Update
In related news, Nigeria's foreign exchange reserves have surged to $48.5 billion, reaching their highest level in nearly 13 years. This milestone, recorded on Tuesday, February 17, 2026, signals renewed strength in the country's external position, with the reserves last at a similar level on May 14, 2013, when they stood at about $48.51 billion.
The combination of rising reserves and CBN interventions highlights the complex dynamics shaping Nigeria's currency market, as authorities balance between supporting the naira and managing economic stability.
