The Nigerian naira began the first full trading week of 2026 with mixed movements across major foreign exchange markets, as renewed dollar demand offset early signs of stability following the year-end holidays.
Early trading on Monday showed a mild recovery from the last trading session of 2025, although analysts say volatility remains as businesses, importers, and investors fully return to the market after the festive break.
Official Market Records Mild Stability
At the Nigerian Foreign Exchange Market, the naira exchanged at an average rate of ₦1,441.85 to the US dollar, according to market data.
The local currency experienced sharp intraday movements in early trading, briefly strengthening to ₦1,437.10 before settling near current levels. Analysts attribute the swings to uneven liquidity supply and cautious market participation.
Pricing at the official window continues to be influenced by interventions and policy guidance from the Central Bank of Nigeria, as authorities push toward exchange rate harmonisation and improved transparency.
Parallel Market Trades at a Premium
In the parallel (black) market, the naira remained weaker than the official rate, though the gap narrowed slightly compared to late December.
Bureau De Change operators in Lagos, Abuja, and Kano quoted the dollar between ₦1,455 and ₦1,465, depending on transaction size and location.
Market watchers link the slower divergence between official and street rates to tighter monetary controls, reduced speculative activity, and steady inflows from remittances at the start of the year.
Demand Pressures Shape Near-Term Outlook
The return of full business activity after the holidays is driving fresh demand for foreign exchange across key sectors of the economy.
Manufacturers and importers are seeking dollars to restock inventories for early 2026, while some investors are positioning ahead of anticipated policy signals.
Analysts note that movements in Nigeria’s foreign reserves, oil price trends, and possible central bank interventions will play a critical role in shaping the naira’s direction in the coming weeks.
For now, the currency is expected to trade within a narrow but volatile range as the market adjusts to post-holiday demand and evolving monetary conditions.
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