The Nigerian Naira continued to record gain against the US dollar during the midweek trading session with the currency dropping below N1,400.
On Tuesday, the local currency hit monthly highs in the Nigerian Foreign Exchange Market (NFEM), where the exchange rate settled at about N1,400.66 per dollar.
But the appreciation continued yesterday when the currency settled 1,394, the highest gain in recent times.
The currency had already made significant gains in the previous session, ending at N1,401.2/$.
The parallel market, also known as the black market, responded more calmly amid the official foreign exchange market’s quick gains.
Analysts observe that the local currency premium decreased compared to naira volatility, even though the difference between the official and parallel rates still exists.
The naira has continued to appreciate in early 2026, keeping the momentum it established in 2025 (the naira enjoyed a decade high performance of 7%-9% against the USD in 2025).
“The dollar’s supremacy is cracking, and markets are building an escape route,” warns the CEO of one of the world’s largest independent financial advisory organisations according to a report.
The warning from Nigel Green of deVere Group comes as a sell-off in the US dollar has gained momentum after President Donald Trump says he isn’t concerned by the currency’s dramatic falls in recent days, as fears in currency markets intensify over the president’s erratic policymaking.
The uptrend in Nigeria’s currency at the official market is not unconnected to the continued rise in the country’s foreign reserves, which stood at $46.04 billion as of 26th January 2026. The naira has recorded gains in the past two trading days at the currency market.
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