The Nigerian Naira traded within a stable range against the US Dollar in early dealings on Friday, February 20, 2026, as improved liquidity and policy adjustments helped contain volatility in the foreign exchange market.
Data from the Nigerian Foreign Exchange Market (NFEM) show that the Naira opened at ₦1,344.74 per dollar, touched an intraday high of ₦1,345.58, and hovered around ₦1,345.40 by mid-day. The previous day’s closing rate stood at ₦1,346.00.
Market watchers attribute the relative stability to interventions by the Central Bank of Nigeria (CBN), which continues efforts to harmonise exchange rates across different segments.
Improved Liquidity in Official Window
The narrowing spread in the official market is linked to stronger liquidity inflows from international counterparties and a recent policy shift allowing Bureau De Change (BDC) operators access to up to $150,000 weekly through authorised dealer banks.
The move has helped reduce retail demand pressure that often pushes official rates higher.
Parallel Market Trades at Premium
In the parallel market, the Dollar traded between ₦1,360 and ₦1,365, depending on location and transaction size.
Although the informal market still commands a premium, the gap between official and parallel rates has narrowed significantly to about ₦15–₦20, compared to wider spreads recorded in previous years.
Analysts say consistent supply in the NFEM has prevented the sharp spikes typically associated with foreign exchange shortages.
Key Drivers Supporting the Naira
Several macroeconomic factors are providing short-term support for the local currency:
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Crude Oil Production: Nigeria’s output recently increased to 1.46 million barrels per day, boosting foreign reserve inflows.
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Monetary Policy Tools: The Standing Deposit Facility and stable Open Repo Rates have helped regulate naira liquidity.
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Institutional Capital Inflows: Increased foreign investor participation in Nigeria’s equity market has strengthened dollar supply.
With these fundamentals in place, analysts expect the Naira to trade within the ₦1,340–₦1,350 range in the official window, barring unexpected global or domestic shocks.
