Naira Depreciates to N1,390/$ Amid Liquidity Concerns

On March 3, 2026, the Naira closed at N1,390/$ in the official foreign exchange market, marking a continuation of its depreciation streak that has lasted nearly two weeks. Data published by the Central Bank of Nigeria (CBN) indicates that the local currency has faced sustained pressure, reflecting a consistent weakening pattern since mid-February when it was valued at N1,337 on February 17.

The decline in the Naira's value has been characterized by daily trading sessions that have shown a clear downward trajectory, with almost daily losses recorded. This situation has arisen amid concerns regarding foreign exchange liquidity and a widening gap between the official and parallel markets.

Despite these challenges, the CBN has pointed to improvements in Nigeria's external reserves, which could provide a buffer against liquidity conditions. The strengthening of the U.S. dollar, which has reached a three-month high due to escalating geopolitical tensions in the Middle East, has further impacted the Naira's value.