Naira weakens to N1,387/$ as reserves fall to $49.29 billion in March

The naira weakened slightly to N1,387/$ on Tuesday, compared to N1,386.75/$ recorded in the previous session.

This is according to data from the Central Bank of Nigeria (CBN).

The marginal depreciation comes amid a decline in Nigeria’s external reserves, which dropped to $49.29 billion by the end of March 2026.

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The development reflects ongoing pressure in the foreign exchange market despite relatively stable global currency movements.

Market activity recorded a total turnover of $30.95 million across 44 deals, indicating moderate trading volumes in the official window.

**What the data is saying **

Recent data highlights both the slight weakening of the naira and the steady decline in Nigeria’s external reserves.

• The naira depreciated to N1,387/$ from N1,386.75/$ in the previous trading session.
• Intra-day trading ranged between N1,385.5/$ and N1,388/$, with an average rate of N1,386.69/$.
• Nigeria’s foreign reserves fell from $50.03 billion on March 11 to $49.29 billion by March 30, representing a decline of about $547 million.
• The reserves decline occurred gradually over the period, rather than through a single sharp drop.

The data suggests persistent but controlled pressure on the naira, alongside a steady drawdown in external buffers.

The current movement in the naira comes against the backdrop of Nigeria’s ongoing foreign exchange reforms, which have seen the CBN adopt a more market-driven exchange rate system since mid-2023.

While these reforms have improved transparency and narrowed the gap between official and parallel market rates, they have also exposed the naira to market forces, resulting in periodic volatility.

More insights

Global currency markets remained relatively stable, with the U.S. dollar holding steady amid easing safe-haven demand linked to geopolitical tensions.

• The dollar index slipped slightly by 0.03% to 99.70, while the euro gained 0.21% to trade at $1.1576.
• The Japanese yen strengthened to 158.55 per dollar, recovering from earlier lows amid improved business sentiment in Japan.
• Sterling also appreciated by 0.21% to $1.3247.

The dollar had previously benefited from safe-haven demand following geopolitical tensions in the Middle East, particularly the conflict involving Iran, although easing concerns have moderated its gains.

What you should know

Nigeria’s foreign reserves serve as a critical buffer for supporting the naira and meeting external obligations.

• The apex bank has projected that reserves could reach $51 billion by the end of 2026 as part of its broader macroeconomic stabilization and confidence-restoration agenda.
• This is according to the Central Bank of Nigeria’s (CBN) 2026 Macroeconomic Outlook for Nigeria.
• The $51 billion projection forms part of a medium-term strategy to strengthen balance-of-payments resilience.

The apex bank linked the positive reserve outlook to expanded domestic refining, notably the Dangote Refinery’s planned capacity increase to 700,000 bpd in 2025 and a longer-term target of 1.4 million bpd.